By Lisa Kerner
Charlotte, N.C., June 27 - Fidelity National Information Services, Inc. agreed to acquire EFD/eFunds Corp. for $36.50 per share in an all-cash transaction valued at about $1.8 billion.
The transaction, subject to shareholder approval, is expected to be completed by the end of the third quarter of 2007.
Fidelity National said it will fund the purchase with a combination of cash on hand and long-term debt commitments.
"The acquisition of eFunds provides FIS with greater scale, extends our presence in the U.S. and international banking markets, and expands the distribution channel for our core processing and risk analytic services," Fidelity National executive chairman William P. Foley, II, said in a company news release.
Fidelity National said it expects to realize approximately $65 million in annual cost savings. The company was advised by Banc of America Securities LLC, Bear, Stearns & Co. Inc. and LeBoeuf, Lamb, Greene & McRae LLP. JPMorgan Chase and Bank of America, NA provided customary committed financing letters. eFunds was advised by BlackRock, Inc. and Goldman, Sachs & Co.
eFunds is a Scottsdale, Ariz., provider of risk management, electronic payments and global outsourcing solutions.
Fidelity National, located in Jacksonville, Fla., provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products.
| Acquirer: | Fidelity National Information Services, Inc.
|
| Target: | EFD/eFunds Corp.
|
| Transaction total: | $1.8 billion
|
| Price per share: | $36.50
|
| Announcement date: | June 27
|
| Expected closing: | Third quarter of 2007
|
| Stock price for target: | NYSE: EFD: $34.69 on June 26
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
