Fidelity National Buyout

Private Equity Firms Attempting Buyout of Fidelity National

Yesterday, I wrote of a rumored $10 billion private equity deal that would be a major step in the industry’s recovery.  Now, a major private equity deal may be in the works as private equity firms are trying to buyout a banking and payments technology solutions provider.  Reportedly, TPG Capital, Thomas H. Lee Partners and Blackstone Group are working to purchase Fidelity National Information Services (FIS).  The company has a market value of about $11 billion and shares rose 10% on news of the deal.

THL Partners and TPG Capital tried to buy the firm five years ago but settled for a 25% stake before the company became listed on the NYSE.  Now, THL Partners is supposed to still have a 4% stake in the company and would expand that with this club deal.  Citigroup Inc (C), JPMorgan Chase & Co (JPM), and Bank of America Corp (BAC) are supposed to be the firms financing the deal.

On April 27, FIS said its profit for the first quarter rose sharply helped by substantial increase in processing and services revenues. On an adjusted basis, earnings were well above estimates, while revenue beat estimates narrowly.

During the quarter, FIS recorded acquisition related after-tax costs totaling $12.8 million or $0.03 per share. On October 1, 2009, FIS completed the acquisition of Metavante Technologies, Inc.

The deferred revenue adjustment impacted after-tax earnings by $5.6 million or $0.01 per share. These combined charges, along with purchase price amortization of intangible assets acquired through various acquisitions, resulted in net earnings from continuing operations of $94.7 million, compared to $32.7 million in the year-earlier quarter. Adjusted net earnings from continuing operations totaled $154.1 million or $0.41 per share. On average, 18 analysts’ polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts’ estimate typically excludes one-time items.  Source

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Tags: Fidelity National Buyout, Fidelity National private equity deal, Fidelity National shares, Fidelity National private, Purchase, buyout of Fidelity National, THL Partners, TPG Capital, Blackstone Group

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