Jan 14 - Standard & Poor's Ratings Services said today that its corporate
credit and other ratings on Brookfield, Wis.-based Fiserv Inc.
(BBB-/Stable/A-3) remain unchanged following the company's recent announcement
that it has acquired Open Solutions Inc. The transaction included a purchase
price of $55 million and the assumption of approximately $960 million of debt.
Open Solutions is a Glastonbury, Conn.-based technology provider to banks,
thrifts, and credit unions. We expect the transaction to be complementary to
Fiserv's customer base and technology solutions. While we expect pro forma
leverage to increase modestly from 2.5x as of September 2012, we also expect
the company to maintain its "intermediate" financial risk profile as it
pursues growth objectives and shareholder returns, with leverage below 3x. Our
ratings on Fiserv are supported by the company's "satisfactory" business risk
profile, distinguished by its position as one of the leading U.S. providers of
financial data processing and support services, a sizable stream of recurring
revenues, and solid cash flow generation.