Major Consolidation Underway in Financial Technology Sector

CSC bought Fixnetix for $100 million, Markit bought CoreOne Technologies for $200 million and FIS bought SunGard for $9.1 billion.

Three separate acquisitions were revealed today showing a massive trend toward consolidation in the financial technology sector.

Computer services group, CSC aims to push into managed services with the $100 million acquisition of Fixnetix. CSC says the proposed acquisition will enable it to offer capital market clients an expanded range of “as-a-service” front office capabilities and will strengthen its ability to address growing demand for greater efficiency in trading, market data, hosting, infrastructure, connectivity and risk management.

Hugh Hughes, CEO and Chairman of Fixnetix, commented: “We will gain the resources that we need to better respond to market demand, effectively address bigger deployments, and build on our established success. CSC’s proven at-scale reputation to deliver across all industries will fundamentally bring greater credibility and presence to Fixnetix.”

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Markit, the provider of financial information services, today announced that it has agreed to acquire CoreOne Technologies, a global leading provider of regulatory reporting, index management, data management and prime brokerage services to financial institutions.

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Rob Flatley, Chief Executive Officer of CoreOne, said: “We’re excited about joining Markit and the benefits this will bring to our customers and employees. We look forward to enhancing our offerings with Markit’s datasets, analytics and global distribution capabilities as we continue to deliver best in class services to our customers.”

Following closing, CoreOne’s four core products, RegOne, DeltaOne, VistaOne and PrimeOne will be integrated into Markit’s Information and Solutions divisions.

Fintech Powerhouse

FIS (Fidelity National Information Services) has signed an agreement to acquire SunGard for $9.1 billion in a cash and stock deal, creating a new giant covering the full spectrum of banking and capital markets services. The combined company will have more than 55,000 employees across 100 countries and over $9.2 billion in annual revenues.

Under the terms of the agreement, FIS will acquire 100% of the equity of SunGard. The $9.1 billion valuation includes the assumption of SunGard debt, which FIS expects to refinance.

Gary Norcross, President and Chief Executive Officer, FIS, says the deal 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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