Wells Fargo and Fiserv will conclude their long-standing merchant acquiring joint venture next year.
Wells Fargo Merchant Services (WFMS), in which Fiserv acquired a 40% stake through its 2019 merger with First Data, is set to expire on April 1, 2025. In a recent SEC filing, Fiserv indicated that it anticipates receiving a cash payment or assets equivalent to the valuation of its stake in WFMS. The payment processing giant also expects to incur an impairment charge between $400 million and $600 million.
Despite the termination of the joint venture, both companies have agreed to a new multiyear contract for Fiserv to continue processing for existing and future merchant clients.