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Fidelity National Information Services Inc. said Wednesday it will buy Metavante Technologies Inc. to create at $10 billion financial-transactions company. According to the deal, Metavante stakeholders will receive 1.35 shares of Fidelity for each common share they own. "The combined scale, complementary product capabilities and market breadth of these two great companies will drive significant competitive advantages in the increasingly dynamic marketplace," stated William Foley, chairman of Fidelity. The deal is expected to be accretive in 2010 with $1.3 billion in earnings before interest, taxes, depreciation, and amortization. The companies also expect to trim out about $260 million in savings. Shares of Fidelity closed Tuesday at $18.20, up 2%, while shares of Metavante were up 2.8% to close at $19.96. Swiss banking software firm Temenos Group AG (TEMN.EB) said Wednesday its contract with its partner Metavante Technologies Inc. (MV) remains intact, even if Fidelity National Information Services Inc. (FIS) goes ahead with its plan to buy Metavante. "The contract between Temenos and Metavante concerning the joint development and marketing of Temenos Corebanking in the U.S. is binding upon both parties and assigns to successors in the case of either party being acquired," Temenos said in a statement. Earlier Wednesday, Fidelity National Information Services said it agreed to acquire Metavante, a provider of processing services to financial institutions, in a stock deal valued at $2.94 billion. In February 2007, Temenos and Metavante entered a strategic agreement to jointly develop and market an advanced core banking platform based on Temenos Corebanking to be targeted at top-tier U.S. financial institutions. The agreement gives exclusivity to Metavante to market the jointly-developed product in the U.S. and entitles Temenos to certain minimum royalty payments until 2012. Company Web sites: www.temenos.com; www.metavante.com; www.fidelityinfoservices.com
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References:
http://online.wsj.com/article/BT-CO-20090401-709089.html,http://www.foxbusiness.com/story/markets/industries/finance/fidelity-national-information-buy-metavante/,http://www.transworldnews.com/NewsStory.aspx?id=82002&cat=8,http://www.huliq.com/1/79173/fidelity-national-information-services-buying-metavante
