FIS to buy Metavante

http://pindebit.blogspot.com/2009/04/nyce-metavante-acquired-by-fidelity.html

http://www.digitaltransactions.net/newsstory.cfm?newsid=2130

http://www.americanbanker.com/btn_article.html?id=20090402BY4WW8EY

The payment space is hot. With FIS’s recent $2.94B acquisition of Metavante will create a company w/ combined revenue of over $5B. Good move by FIS. According to the deal summary, drivers were:

Enhances growth prospects
•Generates substantial synergies
•Drives margin expansion
•Increases financial flexibility
•Accretive to cash earnings
•Creates significant shareholder value

Expect $260MM expense save in combined entity.  FIS will be a key channel to deliver service to banks outside the top 20. External vendors should be ramping up there alliance plans w/ FIS.

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