Fidelity's brokerage unit National Financial
is paying $365 million to acquire the BHC Investments, Fiserv's
securities clearing operation.
Through the deal, National boosts its client roster by 142 to 411, an increase of 53 percent. National has already been and will continue to "reach out to Fiserv's existing customers," said Fidelity spokesman John Brockelman.
"This acquisition firmly demonstrates Fidelity's continued long-term commitment to the brokerage business - specifically our correspondent clearing operation," stated Robert Reynolds, vice chairman and chief operating officer of Fidelity.
BHC Investments' main operations are in Philadelphia, said Brockelman. He declined to comment on the plan to integrate the businesses, saying it was "premature." The transition is expected to close by the end of 2005.
The deal is "good for our clients and good for Fiserv's," said Brockelman, adding that "[the] business is very capital-intensive and scale is the key way to deliver efficient prices and broad services" to clients, said Brockelman.
Fiserv Chief Executive Officer Leslie Muma was unavailable to return a call seeking comment.
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