Fidelity National Information Services Inc., a provider ofbanking and payments technology, agreed to buy software makerSunGard Data Systems Inc. in a deal valued at $9.1 billion,including the assumption of debt.
|FIS, as the firm is known, will issue a combination of cash andstock to acquire all of SunGard's equity, Jacksonville,Florida-based FIS said Wednesday in a statement. The combinedcompany will have more than $9.2 billion in annual revenue and55,000 employees, and will operate in more than 100 countries,according to the statement.
|“This is a significant milestone for FIS,” Chief ExecutiveOfficer Gary Norcross said in the statement. “We are enhancing ourability to empower our clients and deepen client relationshipsthrough an expanded full-service offering.”
|The acquisition, financed with a mix of 45 percent cash and 55percent FIS stock, will help the buyer push into capital marketsand wealth-management sectors, according to a presentation on thecompany's website. The firm forecast $200 million in cost savingsby 2017, and said it will temporarily suspend sharerepurchases.
|SunGard, which makes software for financial institutions, isowned by seven private-equity firms, including Silver LakeManagement, Providence Equity Partners, and KKR & Co. TheWayne, Pennsylvania-based company filed to go public in June. Itslong-term debt was $4.67 billion at the end of March, according toregulatory filings, while cash was $555 million.
|SunGard was acquired by the private-equity firms for about $11billion in 2005, when leveraged buyouts by large groups ofinvestors were more popular.
|Fidelity National Financial Inc. spun off Fidelity NationalInformation Services in 2006.
|Bank of America Corp. and Centerview Partners LLC were financialadvisers to FIS, and Willkie Farr & Gallagher LLP providedlegal advice. Goldman Sachs Group Inc., JPMorgan Chase & Co.,Barclays Plc, Deutsche Bank AG, and Credit Suisse Group AG wereSunGard's financial advisers. Simpson Thacher & Bartlett andShearman & Sterling served as legal advisers to SunGard.
|The deal is expected to be completed in the fourth quarter,according to the statement.
|–With assistance from Alex Sherman in New York.
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
