Tech giant FIS closes 5.1 billion acquisition of SunGard
Fidelity National Information Services, in short known as FIS, has completed its $5.1 billion acquisition of SunGard. The deal creates one of the globe’s largest service providers, with more than 55,000 employees and revenues in excess of $9.3 billion.
SunGard has, since its founding in 1982, grown into a major financial software companies, with annual revenue of $2.8 billion. The company’s 13,000 employees provide solutions for financial services, the public sector and education, including software, cloud infrastructure, global service capabilities and functional expertise. The company also has a professional services arm, whose job it is to provide implementation and integration of solutions, custom software development and managed services.
Jacksonville, Florida (US) headquartered FIS is a global financial technology services firm that serves more than 14,000 institutions in over 130 countries, among others in the area of payment processing and banking solutions.
In August FIS and SunGard unveiled that they had struck a deal worth $5.1 billion, based on $2.3 billion in cash, $2.8 billion of FIS shares, and the assumption of SunGard debt. Four month down the line, in sync with the expectation the deal would be closed in the fourth quarter, the two partners have now confirmed that regulatory approvals and other customary closing conditions have been met, closing the transaction.
The deal sees the joint company provide the two firms’ complementary offerings, including retail and institutional (or wholesale) banking, payments, risk management, asset solutions and insurance. The combined company has more than 55,000 employees and $9.3 billion in revenue on a pro-forma basis.
“At FIS, we are driving innovative solutions and delivering high-quality client experiences that move our clients’ business forward each and every day,” says Gary Norcross, President and CEO, FIS. “This acquisition creates one of the broadest sets of technology assets and market expertise in the industry, and allows FIS to present new opportunities to our existing client base as well as to financial services markets that we have not historically served.”
Russ Fradin, SunGard President and Chief Executive Officer adds, “Our focus has always been on delivering more value to our clients and making decisions that achieve our growth and performance objectives. We are proud to become part of one of the financial services industry’s most respected and solidly performing companies. We embrace this transaction and believe it is the best outcome for our employees and the clients we are dedicated to serving.”
Dealmakers
FIS was advised on by financial advisors from Bank of America and Centerview Partners, while Willkie Farr & Gallagher provided legal advice. Goldman Sachs, JP Morgan Chase, Barclays, Deutsche Bank and Credit Suisse were SunGard’s financial advisers. Simpson Thacher & Bartlett and Shearman & Sterling served as legal advisers to SunGard.
