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8-K - FORM 8-K - NAVIENT CORP | form8-k_05232018.htm |
First Data and Navient Announce
Agreement on Student Loan Technology
NEW YORK and WILMINGTON, Del., May 23, 2018—First Data
(NYSE: FDC) and Navient
(Nasdaq: NAVI) announced they have reached a strategic agreement
for First Data to become the primary provider of technology
solutions for Navient’s federal and private education loans.
This agreement expands on First Data and Navient’s
longstanding partnership to support private student
loans.
As a
part of the agreement, First Data will acquire Navient’s
student loan technology platform. Navient information technology
talent who manage the platform will join First Data.
First
Data is one of the world’s largest providers of credit
processing services, with more than a billion accounts on file.
This agreement will also position First Data as a major provider in
the student loan technology market and allow First Data to further
leverage its scale, technology, and deep experience on behalf of
student borrowers. To reinforce First Data’s commitment to
this space, First Data is establishing First Data Education, which
will be led by Jeff Whorley. Jeff has been Group President, Asset
Management and Servicing at Navient and will become a member of
First Data’s Management Committee.
As one
of the largest servicers of student loans, Navient will continue to
provide its leading customer service, data insights, default
prevention, back office support, and other services that have
delivered a track record of customer success.
“We
are delighted that Navient has chosen First Data as its partner.
Student loan technology is a natural adjacency for First Data, and
this agreement significantly expands our capabilities in this
sector,” said Andrew Gelb, executive vice president, head of
Global Financial Solutions, First Data. “Navient’s
platform is well-proven, and we welcome the Navient employees
joining our company.”
“This
agreement with First Data enhances our ability to bring agility,
scalability and innovation across our digital technologies enabling
us to continue to deliver better outcomes for the student borrowers
we serve,” said Patricia Lawicki, executive vice president
and chief information officer, Navient. “First Data
understands our business, and this agreement also gives us the
ability to create a more effective long-term cost structure for our
business.”
Navient
will continue to service loans for its 12 million federal and
private education loan customers, including those serviced under a
contract with the U.S. Department of Education.
The
agreement is expected to close in the third quarter, subject to
certain closing conditions.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology, serving approximately six million business locations
and 4,000 financial institutions in more than 100 countries around
the world. The company’s 22,000 owner-associates are
dedicated to helping companies, from start-ups to the world’s
largest corporations, conduct commerce every day by securing and
processing more than 3,000 transactions per second and $2.4
trillion per year.
About Navient
Navient (Nasdaq: NAVI) is a leading provider of asset management
and business processing solutions for education, healthcare, and
government clients at the federal, state and local levels. The
company helps its clients and millions of Americans achieve
financial success through services and support. Headquartered in
Wilmington, Delaware, Navient employs team members in western New
York, northeastern Pennsylvania, Indiana, Tennessee, Texas,
Virginia, Wisconsin, California and other locations. Learn more at
navient.com.
Contacts
Media:
Mia Shernoff
First Data
212-515-0225
mediarelations@firstdata.com
Paul Hartwick
Navient
302-283-4026
paul.hartwick@navient.com
Investors:
Peter Poillon
First Data
212-266-3565
peter.poillon@firstdata.com
Joe Fisher
Navient
302-283-4075
joe.fisher@navient.com
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