US financial software and tech group FIS has agreed to acquire US-based financial software firm SunGrad in a cash and stock deal worth $9.1 billion including debt. The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the fourth quarter of 2015.
Under the terms of the agreement, FIS will take over 100% of the equity of rival firm SunGard. FIS will issue a combination of cash and stock valuing SunGard at an unaffected enterprise value of $9.1 billion, this include the assumption of Sungard debt, which FIS expects to refinance.
The two companies have complementary technology solutions and services encompassing retail and corporate banking, payments technology, financial services, risk management, asset solutions and insurance.
FIS' acquisition of SunGard will lead to the creation of one big company offering a wide range of enterprise banking and capital markets capabilities for financial institutions and businesses worldwide. According to a statement, the combined entity will have an annual revenues of over $9.2 billion, more than 55,000 employees and thousands of clients in 100 countries.
FIS, previously known as Fidelity National Information Services, is the world's largest provider of banking and payments technology solutions and a global leader in consulting and outsourcing solutions. Based in Jacksonville, Florida, FIS employs more than 42,000 people worldwide and serves more than 14,000 institutions in over 130 countries. It holds leadership positions in banking and payment technology as well consulting and outsourcing solutions, providing software and other technology services to the financial industry.
Headquartered in Wayne, Pennsylvania, SunGard is one of the world's leading financial software companies , with annual revenues of over $2.8 billion. SunGard's 13,000 strong employees provide solutions for financial services and the public sector. Its software solutions are delivered via cloud or on premise deployments, surrounded by an extensive suite of service offerings.
“This is a significant milestone for FIS,” Gary Norcross, president and chief executive officer, FIS, said in a statement. “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.”
BofA Merrill Lynch and Centerview Partners LLC served as financial advisors to FIS. And Willkie Farr & Gallagher LLP served as legal advisors to FIS. Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Credit Suisse served as financial advisors to SunGard, while Simpson Thacher & Bartlett and Shearman & Sterling acted as SunGard’s legal advisors.
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