Fidelity National to buy SunGard

Financial industry software maker Fidelity National Information Services Inc. said it would buy SunGard Data Systems Inc. for $9.1 billion including debt, scooping up one of the longest-held investments in private-equity history. Fidelity National, which had been in exclusive talks to buy SunGard and get access to its thousands of trading and money management clients, said it would pay 45% in cash and 55% in stock for the Wayne, Pennsylvania-based company.

SunGard was bought for $11.4 billion in 2005 by Silver Lake Partners, TPG Capital, Bain Capital, Blackstone Group, Goldman Sachs Capital Partners, KKR & Co and Providence Equity Partners Inc in one of the largest leveraged buyouts before the 2008 financial crisis.

SunGard, which had debt of $4.67 billion as of June 30, had filed for an initial public offering in June. Fidelity National said it expected to refinance the debt.

Reuters reported in April that SunGard would explore both an outright sale and an IPO. Fidelity National's shares were up 4.8% at $68.19 in light premarket trading on Wednesday.

The combined company, which will cater to clients in the banking, insurance and asset management industries, will have annual revenue of about $9.2 billion and 55,000 employees in more than 100 countries, Jacksonville, Florida-based Fidelity National said.

BofA Merrill Lynch and Centerview Partners LLC acted as financial advisers to Fidelity, while Willkie Farr & Gallagher LLP served as legal adviser. Goldman Sachs & Co, J.P. Morgan Securities, Barclays, Deutsche Bank Securities Inc and Credit Suisse acted as financial advisers to SunGard. Simpson Thacher & Bartlett and Shearman & Sterling served as legal advisers.

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