Fidelity National, which had been in exclusive talks to buy SunGard and get access to its thousands of trading and money management clients, said it would pay 45 percent in cash and 55 percent in stock for the Wayne, Pennsylvania-based company. This will create a company with more than $9.2 billion in annual revenues.
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SunGard provides software solutions for financial services, the public sector and education, while Fidelity National, also known as FIS, supplies banking and payments technology and services. The vendor’s software covers a range of financial services functions including tax and compliance, insurance, retail banking and retirement administration.
“This is a significant milestone for FIS”, says Gary Norcross, president and chief executive officer of FIS.
SunGard, which had debt of $4.67 billion as of June 30, had filed for an initial public offering in June.
Shares of Fidelity National jumped to an all-time high Wednesday. At the time, it was the second-largest deal of its kind, according to data compiled by Bloomberg.
FIS said it was impressed with SunGard’s management, and sees opportunities for some of the company’s leadership to stay on at the new company.
Well certainly make sure that we have everybody that we want to keep and make sure we have them locked up appropriately before we close, Norcross said.
FIS was named as one possible buyer and two weeks ago, Bloomberg News reported that FIS was in exclusive talks to buy SunGard.
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Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Credit Suisse acted as financial advisors to SunGard, while Simpson Thacher & Bartlett and Shearman & Sterling served as its legal advisors in the transaction.
