Key facts
- Activist investor Jana Partners wants Fiserv to increase cost savings to $1.25 billion.
- Jana suggested Fiserv partner with Palantir to streamline technology and reduce debt.
- Fiserv's stock has fallen over 50% in the past year.
- Fiserv's market value is currently around $25 billion.
- Fiserv plans $500 million in cost savings by 2029 as part of 'Project Elevate'.
Activist investor Jana Partners is pushing payments company Fiserv to significantly increase its cost-saving targets and leverage Palantir's technology to drive efficiency. In a letter viewed by Reuters, Jana urged Fiserv to more than double its planned cost cuts to $1.25 billion and to utilize Palantir's software to streamline technology, reduce debt, and rationalize spending.
Fiserv, currently valued at approximately $25 billion, has seen its stock price decline by more than half over the past 12 months, reaching its lowest close since February 2016 on September 23. Jana attributes this performance to what it calls "serial mis-forecasting and guidance reductions."
Fiserv CEO Takis Georgakopoulos recently indicated that the company is undertaking a review of its businesses and may pursue further divestments. This follows reports in July that Fiserv was considering selling its debit card transaction processing business, a move that Jana had previously welcomed. However, Jana believes more substantial changes are needed more quickly.
Jana has a track record of advocating for the use of Palantir's technology in companies it targets. For instance, defense contractor Mercury Systems, where Jana's Scott Ostfeld is a director, announced a partnership with Palantir in August. Jana also has experience with payments companies, having previously influenced Fidelity National Information Services to separate its Worldpay business.