Fifth Third Sells Majority Stake In Payment Processing Unit To Advent

Fifth Third Bancorp. said Monday it agreed to sell 51 percent of its payment processing unit to private equity firm Advent International Corp. for $561 million.

The unit will be spun off into a joint venture valued at about $2.35 billion, Fifth Third said in a statement.

The Cincinnati-based bank said it would provide $1.25 billion in bank loans to fund the new company, in which it will hold the remaining 49 percent.

Fifth Third said the transaction is expected to increase its Tier 1 capital by about $1.2 billion.

Fifth Third’s shares closed at $2.35 Friday on Nasdaq.