updated - October 29, 2020 Thursday EDT
Fidelity National Information Services, Inc. (FIS) has just announced that it has signed a "definitive agreement" to acquire SunGard Data Systems, Inc., one of the world's leading financial software companies, for $9.1 billion, according to a press release issued by FIS.
The deal will allow FIS, the world's largest provider of banking and payments technology solutions and a global leader in consulting and outsourcing solutions, to expand its range of enterprise banking and capital markets capabilities.
The two companies have complementary technology solutions and services, according to the press release.
These solutions and services include retail and corporate banking, payments, risk management, asset solutions and insurance.
Gary Norcross, CEO of FIS, said in the press release that the combined companies will enhance FIS' ability to empower its "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" he said.
He added that the two companies have "common business models, similar cultures, strong leadership and complementary solutions."
Bloomberg adds that the deal will also give FIS access to SunGard's biggest asset managers, traders and corporate clients.
Norcross told Bloomberg in an interview that the acquisition brings them "into the largest asset managers in the world."
Brett Horn, an analyst at Morningstar, Inc., told Bloomberg that adding those types of capabilities will make sense for FIS, given their "increasing focus on large banks."
Under the terms of the agreement, FIS will be acquiring 100 percent of SunGard's equity, and assume SunGard's debt, which will be refinanced, according to the press release.
FIS will pay with a combination of cash and stock.
The deal, which is expected to close in the fourth quarter of 2015, is subject to regulatory approvals and other customary closing conditions, according to the press release.
The combined company will have an annual revenue of over $9.2 billion.
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