Fiserv Inc. said Wednesday it will receive about $510 million by selling a majority stake in its insurance business, money that will help the Brookfield-based financial technology provider buy back shares of its stock.

Fiserv expects to receive approximately $510 million in net after-tax proceeds and to retain a 49% equity interest in Fiserv Insurance Solutions.

In conjunction with the sale announcement, Fiserv said its board had approved the repurchase of up to 10 million shares, about 6% of the company’s stock. Fiserv also reaffirmed its earnings estimates for the year.

Wall Street liked the news, boosting Fiserv’s share price $2.45, or 5.4%, to $47.75 on an otherwise down day for the stock markets.

David Koning, an analyst who covers financial technology firms for Milwaukee’s Robert W. Baird & Co., said the sale of a majority stake in the insurance technology business makes sense. The insurance unit had “tended to underperform,” and the sale price was a good one, he said. He said cash from the sale will allow Fiserv to buy back shares at a relatively low price.

“Given the heavy debt load that Fiserv has right now, they were boxed out of being able to buy back stock. But this inflow of cash, with the sale of this business, gives them flexibility now to buy back shares at a price that is very good for buying back shares,” Koning said.

Fiserv said the unit’s current management team and employee base will continue with the company.

Jeffery Yabuki, president and chief executive of Fiserv, said Stone Point Capital “brings a proven track record of insurance industry success that we believe will accelerate the growth opportunities for Fiserv Insurance Solutions and its clients.”

“Within Fiserv, we are able to free up capital, maintain an interest in Fiserv Insurance Solutions that should increase in value, and intensify our focus on delivering products and services within the broad financial services and payments landscape,” Yabuki said in a press statement.

Stone Point is primarily known for investments in the insurance and financial services industries, including insurance underwriting, distribution and services; benefits and health care; asset management and retirement savings; and banking and depository institutions.

In connection with the sale, Fiserv affirmed its 2008 adjusted earnings-per-share guidance range of $3.28 to $3.40 from continuing operations.

The transaction is expected to close this month.