Fidelity National Information Services Will Buy Metavante

Company goes for $3 billion

Fidelity Information and Metavante Technologies have reached an agreement.

Fidelity National Information Services Inc. will purchase Metavante Technologies Inc. in the third financial quarter of this year. Fidelity and Metavante announced the $3 billion all-stock deal today.

One giant company

The stock deal eliminates the need for Fidelity to get cash advances in order to acquire Metavante. Together, the companies will be a $10 billion financial transactions company.

For shareholders

The deal specifies that each Metavante stakeholder will get 1.35 shares of Fidelity for each common share they own. Fidelity also is offering shareholders a 23 percent premium based on Metavante ’s closing price Tuesday.

Why the deal?

“The combined scale, complementary product capabilities and market breadth of these two great companies will drive significant competitive advantages in the increasingly dynamic marketplace,” stated William Foley, chairman of Fidelity.

Savings and earnings

Fidelity expects this acquisition to bring in an additional  $1.3 billion in earnings in 2010. Of course, that is before interest, taxes, depreciation, and amortization. The companies also say the deal will amount to savings of about $260 million.

Where in the world …

Metavante is based in Milwaukee, Wis. However, it employs hundreds in Florida. Fidelity is based in Jacksonville. Metavante’s banking software division is located in Altamonte Springs, Fla. ... click here to read the rest of the article titled "Fidelity National Information Services Will Buy Metavante"