fidelity national information services: Fidelity National Information to buy Metavante

NEW YORK (MarketWatch) -- Fidelity National Information Services Inc. (FIS: 17.23, -0.97, -5.3%) said Wednesday it will buy Metavante Technologies Inc. (MV: 22.35, +2.39, +12.0%) 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.


Source: marketwatch.com