Shares in Fidelity National Information Services have climbed on speculation that the payment services group is in talks to buy financial technology conglomerate SunGard.
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 according to reports from Bloomberg, the tech powerhouse is currently in exclusive talks with Fidelity over a mixed cash and stock bid of $8.3 billion.
SunGard was acquired in August 2005 by seven private equity firms for $11 billion. SunGard's owners, Bain Capital Partners, The Blackstone Group, Goldman, Sachs, KKR, Providence Equity Partners, Silver Lake Partners and TPG Capital, successfully steered the firm through the worst of the 2008 financial crisis, but have seen its value diminish in an economic environment more conducive to smaller, agile competitors selling tactical solutions to belt-tightening banking customers.
Annual revenue at SunGard increased last year by two percent to $2.8 billion, with total debt at $4.7 billion and cash at $447 million. Adjusted earnings remained flat at $765 million.
Shares in Fidelity rose 4.1% in morning trading as the news crossed the wires, with both firms declining to comment.