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Technology / Hardware

SunGard sold to US fintech firm FIS for $9bn

SunGard is being sold in its entirety to the American fintech firm Fidelity National Information Services (FIS) in a landmark deal worth $9.1bn (£5.8bn).

Under the agreement FIS will buy 100% of the equity in SunGard as well as the software maker’s debt, creating a combined company with $9.2bn in annual revenues and 55,000 staff.

Gary Norcross, chief executive officer at FIS, said: "This is a significant milestone for FIS.

"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. "

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SunGard’s net debt was said to stand at $4.16bn at the end of June, according to data from Bloomberg, implying a company value of around $5bn taking into account the sale price.

The software vendor, which specialises in financial services, had filed for an initial public offering (IPO) back in June, a decade after it was acquired by a consortium of investment firms.

Despite a prestigious customer list that includes many of the world’s big banks, insurers and private equity firms, SunGard endured a turbulent few years as it posted serial losses.

Last year the company even spun off its disaster recovery unit that accounted for a third of revenues, in what many analysts saw as an effort to make itself more attractive to buyers.

"Our focus has always been on delivering more value to our clients and making decisions that achieve our growth and performance objectives," said Russ Fradin, chief executive at SunGard.

"We are proud to become part of one of the financial services industry’s most respected and solidly performing companies."
This article is from the CBROnline archive: some formatting and images may not be present.