FIS Modern Banking Platform
Advance your bank with a modern core platform.
December 07, 2016
JACKSONVILLE, Fla., December 7, 2016 – FIS™ (NYSE: FIS), a global leader in financial services technology, today announced it has signed a definitive agreement to sell its SunGard Public Sector and Education businesses to Vista Equity Partners (Vista) for $850 million. The transaction is expected to close in the first quarter of 2017, subject to required regulatory approvals and customary closing conditions.
The transaction will include all SunGard Public Sector and Education solutions, which provide a comprehensive set of technology solutions to address public safety and public administration needs of government entities as well as the needs of K-12 school districts.
The SunGard Public Sector business will become a new independent company under the ownership of Vista and will remain focused on providing technology solutions to government entities, while the SunGard Education business will become part of Vista-owned PowerSchool to create a more comprehensive K-12 technology solution offering for the education market.
“SunGard Public Sector and Education have performed well this year with strong and growing client bases,” said Gary Norcross, president and chief executive officer, FIS. “This divestiture is consistent with our strategy to serve the financial services markets.”
“For years, the SunGard Public Sector and Education businesses have provided innovative and mission-critical solutions that serve the diverse needs of public administration, public safety and education officials,” said Brian Sheth, co-founder and president of Vista. “We look forward to welcoming the businesses into the Vista family and helping them reach their full potential in their important respective markets.”
FIS expected the Public Sector and Education businesses to contribute $0.15 – $0.16 to its full-year 2017 Adjusted EPS. The company expects cash proceeds, net of taxes and deal-related expenses, from the transaction of approximately $500 million. Net cash proceeds will be used to reduce outstanding debt.
Barclays and BofA Merrill Lynch acted as financial advisors to FIS. Willkie, Farr & Gallagher LLP served as FIS’ legal advisors in the transaction. Kirkland & Ellis LLP served as Vista’s legal advisor in the transaction.
FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 55,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.
Vista Equity Partners, a U.S.-based investment firm with offices in San Francisco, Oakland, Chicago and Austin with more than $28 billion in cumulative capital commitments, currently invests in software, data and technology-based organizations led by world-class management teams with long-term perspective. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. Vista’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing. For more information, please visit www.vistaequitypartners.com.
PowerSchool is the #1 leading education technology platform for K-12, serving more than 24.5 million students, 43 million parents, and 68 million users in over 70 countries around the world. We provide the industry’s first Unified Classroom experience with best-in-class, secure, and compliant online solutions, including registration and school choice, student information systems, learning management and classroom collaboration, assessment, analytics, and special education management. We empower teachers and drive student growth through innovative digital classroom capabilities, and we engage families through real-time communications across any device. Visit www.PowerSchool.com to learn more.
This press release may contain statements, estimates or projections that constitute “forward-looking statements” pursuant to the safe harbor provisions of the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from FIS’ historical experience and our present expectations or projections. These risks include, but are not limited to, changes in general economic, business and political conditions, developmental and conversion delays or disruptions inherent with new software products, technology and outsourcing solutions, and risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in or new laws or regulations affecting the banking, retail and financial services industries, changes in the growth rates of the markets for our solutions, and other risks detailed in our filings with the Securities and Exchange Commission (SEC), including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2015, and subsequent SEC filings. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. FIS undertakes no obligation to publicly update or revise any forward-looking statements.
For More Information
FIS Kim Snider, +1 904.438.6278 Senior Vice President FIS Global Marketing and Communications firstname.lastname@example.org
FIS Peter Gunnlaugsson, +1.904.438.6603 Senior Vice President FIS Investor Relations email@example.com
Vista Equity Partners Alan Fleischmann, 202.413.4495 Laurel Strategies firstname.lastname@example.org
Let's work together to reach your goals. Contact us at the links below and a representative will be in touch.
We are here to help you and your business. Contact us using the button below.Learn more