FIS will acquire 100% of SunGard’s equity and issue a combination of cash and stock valuing the company at $9.1 billion, including SunGard’s debt, which FIS expects to refinance. The combined company will have more than $9.2 billion in annual revenues, more than 55,000 employees and support thousands of clients in more than 100 countries, FIS said.
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“This is a significant milestone for FIS,” said Gary Norcross, president and chief executive officer, FIS. “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.”
The transaction is subject to regulatory approvals and other customary closing conditions. FIS expects the transaction to close during the fourth quarter.
“Our focus has always been on delivering more value to our clients and making decisions that achieve our growth and performance objectives,” said Russ Fradin, SunGard president and chief executive officer said. “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.”
Financial advisors to FIS include BofA Merrill Lynch and Centerview Partners LLC; Willkie Farr & Gallagher LLP served as FIS’ 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. Simpson Thacher & Bartlett and Shearman & Sterling served as SunGard’s legal advisors in the transaction.
