Via Times Union...
http://jacksonville.com/business/2010-05-06/story/reports-say-buyout-firms-looking-acquire-fidelity-national-information (http://jacksonville.com/business/2010-05-06/story/reports-say-buyout-firms-looking-acquire-fidelity-national-information)
Two large private equity firms are in talks to buy out Jacksonville-based Fidelity National Information Services Inc., according to news reports today.
The Wall Street Journal reported that Blackstone Group LP was considering the deal along with other firms. Bloomberg News later reported that Thomas H. Lee Partners LP is joining Blackstone in the bid.
Fidelity said the company's policy is to not comment on speculation about acquisitions.
Fidelity National Information Services, or FIS, provide technology services for financial companies. It was spun off from title insurance company Fidelity National Financial Inc. Another publicly-traded company, Lender Processing Services Inc., was spun off from FIS.
The two Fidelity companies and LPS are all headquartered in Jacksonville, but all three operate independently.
Bloomberg reported that "two people with knowledge of the situation" said the deal is "under discussion and may not happen."
Having dealt with Blackstone in the past, I can say they know what they are doing... but they don't always bat .1000.
Just proves that someone at FIS knew what they were doing to spin off the units into separate companies. Blackstone obviously thinks that the stock buying public is undervaluing the new company.
updates via the Jax Biz Journal...
http://jacksonville.bizjournals.com/jacksonville/stories/2010/05/03/daily35.html (http://jacksonville.bizjournals.com/jacksonville/stories/2010/05/03/daily35.html)
Fidelity National Information Services Inc. is reportedly in talks to be acquired by large private equity firms led by the Blackstone Group LP and including THL Partners LP and TPG.
The Wall Street Journal, Reuters, The New York Times’ DealBook and Bloomberg News all reported today that sources briefed about the potential deal said it is near and may or may not work out. Fidelity National declined to comment to the Business Journal.
If completed, the acquisition would make the largest leveraged buyout, valued between $10 billion to $11 billion, since the credit crisis hit three years ago, various reports stated. The deal makes sense for many reasons including the major trend in consolidating technology processors and such companies make a perfect fit for private equity groups, said John Kraft, vice president and senior research analyst at D.A. Davidson & Co. Processors like FIS have a reliable cash flow stream and their value is attractive to private equity groups, he said, but that also depends on the price and how much debt is included in the deal.
The Jacksonville-based company (NYSE: FIS) is one of the city’s largest public companies and is a global provider of technology and payment services to financial institutions. Reports on the potential deal quickly boosted Fidelity National's shares up to 19 percent between the time The Wall Street Journal first reported the talks and before the market droped Thursday. FIS' stock closed at $28.68 per share, up 10.7 percent from the open of $25.90 per share.
Reports stated that THL Partners, also known as Thomas H. Lee Partners, was also involved in the deal.
This was the same group that has assisted FIS with deals for years. Most recently, THL put together the investor group, along with Fidelity National Financial Inc., to purchase 16 million shares of FIS stock in order to complete the acquisition between FIS and Metavante Technologies Inc.
THL is the third largest institutional holder of FIS with nearly 16.5 million shares of the company's stock, according to the U.S. Securities and Exchange Commission.
All parties involved in the new deal with FIS have declined to comment, reports stated.
Read more: Reports: Fidelity in buyout talks - Jacksonville Business Journal: