FIS Completes Acquisition of SunGard Following $9.1 Billion Deal
- An acquisition worth $9.1 billion has closed between Sunward and FIS, which will see the payment of nearly all of SunGard's existing debt.
FIS (NYSE: FIS), a global solutions provider in banking and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term technology, closed today its acquisition of SunGard following its landmark deal of nearly $9.1 billion, according to a SunGard statement.
Earlier this summer, SunGard filed documents for an initial public offering (IPO) in June, which saw an IPO via NYSE-listed FIS in a deal with an enterprise value of over $9 billion.
SunGard is a financial software and technology services company – as a result of the acquisition, FIS will target a broader range of enterprise banking and capital markets solutions in a bid to develop its capabilities in the financial industry. The FIS offering currently includes solutions for post-trade reporting, asset managers, traders, energy trading and fund administration.
Per the acquisition, FIS is slated to pay SunGard’s existing debt except for its senior notes, which will be redeemed on Dec. 1, 2015, pending previously issued redemption notices to noteholders.
It is worth noting that the $9.1 billion garnered to SunGard’s owners represents a depreciation of their purchase price from 2005. At the time, a consortium behind the leverage buyout, which included Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts & Co., Providence Equity Partners, Silver Lake and TPG, had paid $11.4 billion to take SunGard private.
However, deal was funded by around $8 billion in debt, which has since decreased to just over $4 billion. As such, despite the depreciation in SunGard’s value, the consortium should still see a return on the $3.4 billion of equity they invested, albeit a minor one.
According to Gary Norcross, President and CEO of FIS, in a recent statement on the acquisition: “At FIS, we are driving innovative solutions and delivering high-quality client experiences that move our clients’ business forward each and every day. This acquisition creates one of the broadest sets of technology assets and market expertise in the industry, and allows FIS to present new opportunities to our existing client base as well as to financial services markets that we have not historically served.”
“The global financial services sector is evolving rapidly, from regulatory headwinds to increasing capital requirements to new FinTech participants vying for customer engagement,” added Jerry Silva, Research director, Global Banking at IDC Financial Insights in an accompanying statement.
“With the combination of enterprise banking and payments expertise along with well-established solutions in capital markets, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and investment operations, FIS is positioning itself to help their clients better navigate the challenging waters of today's industry. Industry dynamics and global demands have increased the need for strategic IT partners with enterprise vision that can break down silos and drive innovation,” he reiterated.
FIS (NYSE: FIS), a global solutions provider in banking and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term technology, closed today its acquisition of SunGard following its landmark deal of nearly $9.1 billion, according to a SunGard statement.
Earlier this summer, SunGard filed documents for an initial public offering (IPO) in June, which saw an IPO via NYSE-listed FIS in a deal with an enterprise value of over $9 billion.
SunGard is a financial software and technology services company – as a result of the acquisition, FIS will target a broader range of enterprise banking and capital markets solutions in a bid to develop its capabilities in the financial industry. The FIS offering currently includes solutions for post-trade reporting, asset managers, traders, energy trading and fund administration.
Per the acquisition, FIS is slated to pay SunGard’s existing debt except for its senior notes, which will be redeemed on Dec. 1, 2015, pending previously issued redemption notices to noteholders.
It is worth noting that the $9.1 billion garnered to SunGard’s owners represents a depreciation of their purchase price from 2005. At the time, a consortium behind the leverage buyout, which included Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts & Co., Providence Equity Partners, Silver Lake and TPG, had paid $11.4 billion to take SunGard private.
However, deal was funded by around $8 billion in debt, which has since decreased to just over $4 billion. As such, despite the depreciation in SunGard’s value, the consortium should still see a return on the $3.4 billion of equity they invested, albeit a minor one.
According to Gary Norcross, President and CEO of FIS, in a recent statement on the acquisition: “At FIS, we are driving innovative solutions and delivering high-quality client experiences that move our clients’ business forward each and every day. This acquisition creates one of the broadest sets of technology assets and market expertise in the industry, and allows FIS to present new opportunities to our existing client base as well as to financial services markets that we have not historically served.”
“The global financial services sector is evolving rapidly, from regulatory headwinds to increasing capital requirements to new FinTech participants vying for customer engagement,” added Jerry Silva, Research director, Global Banking at IDC Financial Insights in an accompanying statement.
“With the combination of enterprise banking and payments expertise along with well-established solutions in capital markets, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and investment operations, FIS is positioning itself to help their clients better navigate the challenging waters of today's industry. Industry dynamics and global demands have increased the need for strategic IT partners with enterprise vision that can break down silos and drive innovation,” he reiterated.