Fiserv, a big payments company, is shopping parts of its business and cutting $1 billion

Fiserv, a large payments company, has started talking with possible buyers for some of its businesses. It also doubled its cost-savings goal to $1 billion, up from $500 million. CEO Takis Georgakopoulos shared the plans on Tuesday, when the company reported its third-quarter results.

What changed

Georgakopoulos said the company has reviewed every asset that is not central to its plans. He said it looked for ones with money problems, technology problems, overlap with other products, or a poor fit with its long-term vision. Fiserv is now in conversations with multiple parties, with confidentiality agreements and sale processes in place.

Earlier reports, including one from the Wall Street Journal, said Fiserv has talked with major banks about selling one of its debit networks. Fiserv did not name specific assets on the call.

The cost cuts and the numbers

So far, Fiserv has eliminated 3,000 employees and contractors, partly by removing layers of management. The CEO did not say how many were contractors and how many were staff. The company also said it sees ways to work with artificial intelligence partners.

The quarter looked rough on paper. Fiserv reported a net loss of nearly $6 billion, including a $6.45 billion noncash writedown tied to its restructuring. Noncash means it is an accounting entry, not money paid out. Revenue slipped 1% to $5.2 billion.

The chief financial officer, Paul Todd, called the $1 billion target "savings opportunities." He said some of the benefits will not show up until next year or later.

Clover aims at bigger customers

Clover is Fiserv's card-reader and register system, mainly used by small and midsize businesses. Its growth has stalled, and shareholders have sued over missed growth goals. Georgakopoulos said Clover lost clients in the past once they grew larger. It will now go after bigger merchants with multiple locations.

Who it affects

Banks and businesses that use Fiserv for payments are the most exposed. That includes shops that run on Clover. A sale of a business line could mean a new owner, new terms or new support contacts. Nothing has been announced yet.

What is not known yet

• Which businesses are for sale, and who the buyers are.
• How much Fiserv could raise. The CEO said it is too early to estimate.
• Whether any customers will see changes to services or support.

Fiserv is based in Milwaukee. Georgakopoulos has led it since June, after Mike Lyons left following about a year in the job. If you rely on Fiserv or Clover, watch for notices about ownership or service changes.