FIS seeks to boost financial software portfolio with $9.1B Sungard acquisition

After weeks of rumors of a possible deal, Fidelity National Information Services Inc. announced Wednesday morning that it agreed to buy SunGard for $9.1 billion.

Under the terms of the agreement, FIS will acquire 100% of the equity of SunGard. The combined business will have more than 55,000 employees and is expected to record around $9.2 billion in annual revenue. The $9.1 billion valuation includes the assumption of SunGard debt, which FIS expects to refinance.

The deal brings to an in depth one of many longest-held investments in personal fairness historical past, and ends preparations by SunGard’s house owners to take the Wayne, Pennsylvania-based firm public. It has grown via acquisition – completing more than 150 over the past two decades.

While SunGard also provides software and services to government agencies, utilities, schools and nonprofits, investors were focused on the increased access FIS will get to money managers, traders and corporate clients.

“This is a significant milestone for FIS”, says Gary Norcross, president and chief executive officer of FIS.

FIS said it was impressed with SunGard’s management, and sees opportunities for some of the company’s leadership to stay on at the new company.

For FIS, BofA Merrill Lynch and Centerview Partners LLC acted as its financial advisors, while Willkie Farr & Gallagher LLP served as legal advisors in the transaction.

Shares of Fidelity National Information Services Inc. rose $4.89, or 7.5 percent, to $69.96 in afternoon trading Wednesday.

Goldman Sachs & Co, J.P. Morgan Securities, Barclays, Deutsche Bank Securities Inc and Credit Suisse acted as financial advisers to SunGard. Simpson Thacher & Bartlett and Shearman & Sterling served as legal advisers to SunGard.

-With assistance from Alex Sherman in New York.