With a nod of approval from both companies' boards of directors, Fidelity National Information Services Inc. (FIS) has acquired Metavante Technologies Inc., a provider of banking and payments technologies, for $2.94 billion.
Under the terms of the agreement, Metavante shareholders will receive a fixed exchange ratio of 1.35 shares of FIS common stock for each share of Metavante common stock they own. The pro forma enterprise value of the combined company is approximately $10 billion.
The pro forma financial implications are compelling, the companies say, as FIS and Metavante serve complementary customer bases and have diversified and recurring revenue streams.
In 2008, the companies generated a pro forma combined revenue of $5.2 billion. As a result of the combination, FIS anticipates it will achieve cost synergies of approximately $260 million.
‘The combined scale, complementary product capabilities and market breadth of these two great companies will drive significant competitive advantages in the increasingly dynamic marketplace,’ says William P. Foley, II, chairman of FIS.
SOURCE: Fidelity National Information Services Inc.