Banking and payment technology provider FIS has signed an agreement to acquire SunGard for a value of $9.1 billion.
SunGard sees annual revenue of about $2.8 billion. FIS will issue a combination of cash and stock amounting to an unaffected enterprise value of $9.1 billion, including the assumption of SunGard debt.
Combined, the companies anticipate annual revenues exceeding $9.2 billion.
As a result of the acquisition, FIS expects to be able to offer a broader range of banking and capital markets solutions for supporting financial solutions around the world.
SunGard offers a suite of service offerings delivered through either hosted or on-premise deployments, and both companies’ services extend to retail and corporate banking, payments, risk management, asset solutions and insurance.
Gary Norcross, president and CEO of FIS, said: “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.”
President and CEO of SunGard Russ Fradin added: “Our focus has always been on delivering more value to our clients and making decisions that achieve our growth and performance objectives.”
“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.”
Subject to regulatory approvals and customary closing conditions, the transaction is expected to be finalised in Q4 2015.
