FIS agrees $9.1 billion SunGard deal

FIS agrees $9.1 billion SunGard deal

FIS has signed a definitive agreement to acquire Sungard for $9.1 billion in a cash and stock deal, creating a fintech powerhouse covering the full spectrum of banking and capital markets services.

Private equity-owned SunGard filed for an IPO in June, having appointed financial advisors to explore its options in April following an approach from an unidentified third party.

At the time, SunGard's owners had hung a $10 billion price tag on the company, but reports last month suggested the tech conglomerate had entered exclusive talks with Fidelity over a prospective deal.

Under the terms of the agreement, FIS will acquire 100% of the equity of SunGard. The $9.1 billion valuation includes the assumption of SunGard debt, which FIS expects to refinance.

The combined company will have more than 55,000 employees across 100 countries and over $9.2 billion in annual revenues.

Gary Norcross, president and chief executive officer, FIS says the deal is a significant milestone for 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.”

The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the third quarter.

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