FIS, a provider of banking and payments technology solutions and a global leader in consulting and outsourcing solutions, has agreed to buy SunGard, a name which needs no introduction in this context. It is one of the world’s leading financial software companies, with annual revenues of $2.8 billion. The company’s 13,000 employees provide solutions for financial services, the public sector and education. Its software solutions are delivered via hosted or on premise deployments and are surrounded by an extensive suite of service offerings.
FIS will acquire 100 percent of SunGard equity and issue a combination of cash and stock valuing the company at $9.1 billion, including the assumption of SunGard debt. The combined company will have over $9.2 billion in annual revenues.
FIS says that it and SunGard have complementary technology solutions and services encompassing retail and corporate banking, payments, risk management, asset solutions and insurance. The new company will have more than 55,000 employees and support thousands of clients in over 100 countries worldwide.
“This is a significant milestone for FIS,” stated Gary Norcross, FIS President and Chief Executive Officer. “By bringing together two innovative companies with common business models, similar cultures, strong leadership and complementary solutions, we are enhancing our ability to empower our clients and deepen client relationships through an expanded full-service offering. Our focus has always been on championing the needs of our clients and we are excited about the opportunities this combination provides to further deliver on that commitment.”
Russ Fradin, SunGard president and chief executive officer said, “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.”
The transaction is subject to regulatory approvals and other customary closing conditions. FIS expects the transaction to close during the fourth quarter.
BofA Merrill Lynch and Centerview Partners LLC acted as financial advisers to FIS. Willkie Farr & Gallagher LLP served as FIS’ legal advisers in the transaction. Goldman Sachs & Co., JP Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Credit Suisse acted as financial advisers to SunGard. Simpson Thacher & Bartlett and Shearman & Sterling served as SunGard’s legal advisers.
