Fidelity National Information Services (FIS) has finally acquired Metavante Technologies, pursuant to an agreement that was announced in April this year. The deal brings two of the largest core and transaction processing service providers together.

The combined entity will carry the same name as the old one — Fidelity National Information Services — with the same ticker symbol FIS, but will launch a new corporate identity and logo.

According to the agreement, Metavante shareholders have received 1.35 shares of Fidelity common stock for each share of Metavante common stock. The value of the deal came in at $4.4 billion, exceeding the prior estimate of $2.94 billion. The deal value increased due to soaring share prices of the concerned companies since the announcement.

The combination creates an industry leader with improved growth prospects. Fidelity is a leading provider of core and transaction processing services, card issuer solutions and outsourcing services to more than 14,000 financial institutions worldwide. Metavante is a leading provider of banking and payments technologies to approximately 8,000 financial services firms and businesses. Together, the combined company will provide one of the most comprehensive ranges of integrated products and services across more regions worldwide.

The deal is set to provide strategic benefits as Fidelity and Metavante serve complementary customer bases and have highly diversified and recurring revenue streams. As a result of the combination, Fidelity anticipates it will achieve cost synergies of approximately $260 million. The increased global scale and expected cost savings are also expected to generate significant margin expansion. The acquisition is expected to be accretive to earnings in 2010.

The leadership team will comprise of executives from both companies with broad industry experience and strong management depth. Metavante CEO Frank Martire act as the CEO of the combined company and Metavante president Mike Hayford will play the role of Chief Financial Officer of FIS. A total of 12 to 15 Metavante employees will be relocated in the next 30 to 45 days.

Banc of America Securities LLC and Goldman, Sachs & Co. (GS) acted as financial advisors to FIS and Wachtell, Lipton, Rosen & Katz provided legal counsel. Barclays Capital acted as financial advisor to Metavante, while Kirkland & Ellis LLP and Quarles & Brady LLP provided legal counsel.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (PRE) PartnerRe Closes ParisRe DealPartnerRe Ltd. (PRE) has successfully closed its previously announced block purchase of the common shares...
2. (HPQ) Hewlett-Packard Gets American Airlines DealGood news continues for Hewlett-Packard Co. (HPQ). After delivering modest third quarter results, the company...
3. (JCI) Top Fidelity Funds – Mutual Fund EducationFidelity Capital & Income (FAGIX) was incepted in November 1977. The investment seeks income and...
4. (NSM) National Semiconductor Corporation – ROE of 30%National Semiconductor Corporation (NSM) has been outperforming the market, climbing about 7% from the time...
5. (ESI) ITT Educational Services, Inc. – Aggressive Growth – Zacks Rank BuyITT Educational Services, Inc. (ESI) beat analysts estimates once again as student enrollment continues to...
6. (MV) Metavante Technologies Inc. – Aggressive Growth – Zacks Rank BuyMetavante Technologies, Inc. (MV) is showing steady growth despite a hazardous business environment. Estimates and...

Search Posts by Tag: Fidelity National Information Services Inc | FIS | Goldman Sachs Group | GS | Business Services | Services

RSS Feeds by Tag: Fidelity National Information Services Inc | FIS | Goldman Sachs Group | GS | Business Services | Services |

Other Posts by: vitalstocks | RSS Feed for this author