According to a story posted Thursday by Bloomberg News, Jacksonville-based Fidelity National Information Services Inc. “is in exclusive talks” to acquire financial software firm SunGard Data Systems Inc. for more than $8.3 billion.
Fidelity National Information Services, or FIS, would pay half of the price in cash and half in stock, said Bloomberg, citing unidentified sources “familiar with the matter.”
Wayne, N.J.-based SunGard filed for an initial public offering in May. Shortly after the filing, rumors surfaced that its private equity owners were also considering a buyout and that FIS would be one of the suitors.
While FIS is negotiating with SunGard, Bloomberg said the deal “isn’t imminent.”
FIS spokesman Brad Fennessy said Thursday the company does not comment on market speculation or rumors.
SunGard was formerly publicly traded but was acquired by a group of private equity firms for $11 billion in 2005. The company has had operations in Jacksonville since acquiring a local computer services firm called Corbel & Co. in 1996.
SunGard on Thursday reported revenue of $687 million for the second quarter.
FIS’ stock rose as much as $3.41 to $66.65 Thursday after Bloomberg reported the deal was in the works.
Robert W. Baird analyst David Koning said in a research note that a SunGard acquisition could increase FIS’ earnings per share by 5 percent to 10 percent next year.
FIS provides technology services for financial institutions.
“While a Sungard acquisition would be a bit outside of FIS’ typical range of offerings, we think there is a nice synergy opportunity given a similar client base of larger financial institutions. We think this could be done in an accretive fashion without creating an overleveraged situation,” Koning said.