Fidelity National To Buy SunGard For $9.1 Bln, Including Debt

(RTTNews) - IT services provider Fidelity National Information Services, Inc. (FIS) said Wednesday that it has agreed to acquire financial software company SunGard for an enterprise value of $9.1 billion. This includes the assumption of SunGard debt, which FIS expects to refinance.

Wayne, Pennsylvania-based SunGard has annual revenue of $2.8 billion. The company's 13,000 employees provide software solutions for financial services, the public sector and education that are delivered via hosted or on-premise deployments.

Fidelity National Information, or FIS, said it will make the acquisition through a combination of cash and stock, and expects the transaction to close during the fourth quarter.

The company noted that upon closing, it will be able to offer a broad range of enterprise banking and capital markets solutions to empower financial institutions and businesses worldwide.

The combined company, with over $9.2 billion in annual revenues and more than 55,000 employees, will support thousands of clients in over 100 countries worldwide.

SunGard was acquired by private equity firms, including Bain Capital, Blackstone Group, Goldman Sachs Capital Partners and KKR & Co., for more than $11 billion in 2005, in one of the largest leveraged buyouts prior to the 2008 financial crisis.

In June, SunGard filed a registration statement with the U.S. Securities and Exchange Commission relating to a proposed initial public offering.

For FIS, BofA Merrill Lynch and Centerview Partners LLC acted as its financial advisors, while Willkie Farr & Gallagher LLP served as legal advisors in the transaction.

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.

FIS is trading at $69.00, up $3.93 or 6.04 percent on a volume of 2.29 million shares.