Fidelity National acquires eFunds

By Lisa Kerner

Charlotte, N.C., Sept. 12 - Fidelity National Information Services, Inc. acquired all of the outstanding shares of EFD/eFunds Corp. for $36.50 per share, or $1.8 billion in cash, to close the merger deal first announced on June 27.

"eFunds is an excellent fit for our company, and further strengthens our competitive positions in electronic processing and risk management services," Fidelity National executive chairman William P. Foley, II said in a company news release.

"eFunds' products and services complement our existing businesses, and provide FIS with greater scale, product capability and expanded geographic reach," president and chief executive officer Lee A. Kennedy added.

Fidelity National said it expects to realize about $65 million in annual cost savings, with the transaction neutral to 2007 cash earnings per diluted share and accretive to 2008 cash earnings per diluted share.

It was previously announced that 73% of eFunds' outstanding shares were voted in favor of the deal on Sept. 7.

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.

© 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.