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Table of Contents

Lead Story

A sense of community

News

Industry Update

SCA proposes alternative to end-to-end encryption

FIS acquisition of Metavante approved

Swiping at interchange reform

Will Google grab NAA micropayment business?

ETA poised for congressional return

Features

The importance of recession marketing

ISOMetrics:
The promise of community banks

Selling Prepaid

Prepaid in brief

Blessings of SaaS for campus card programs

A new drive for prepaid

Prepaid payroll helps Wal-Mart go green

Views

Summer musings on interchange

Patti Murphy
The Takoma Group

How to win a major bid

Ross Federgreen
CSRSI, The Payment Advisors

Education

Street SmartsSM:
Every little bit helps

Jon Perry and Vanessa Lang
888QuikRate.com

Telephone etiquette

Vicki M. Daughdrill
Small Business Resources LLC

ERR, a merchant retention tool

Bob Schoenbauer
Capitol Payment Systems Inc.

Need cash for your business?

Mark Dunn
Field Guide Enterprises LLC

POS forecast: Increasingly cloudy

Dale S. Laszig
DSL Direct LLC

Company Profile

UP Solution Inc.

New Products

POS payment and acceptance in a phone

ZeniusMobilePay and ZeniusMobilePOS
Zenius Solutions Inc.

Multipurpose bar codes

CodeZ QR
Computer Output Print & Internet

Inspiration

Just ask

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

September 28, 2009  •  Issue 09:09:02

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FIS acquisition of Metavante approved

The acquisition of Metavante Technologies Inc. by Fidelity National Information Services Inc. (FIS) appears all but finalized after the two companies received both clearance from the United States Department of Justice and approval from their respective shareholders in early September 2009.

The acquisition, which will make Metavante a subsidiary of FIS, was disclosed in April 2009. Under the agreement, shareholders will receive 1.35 shares of FIS common stock for each share of Metavante common stock they own, and Metavante will assume the FIS name. In 2008, the companies generated an estimated combined revenue of $5.2 billion.

Large acquisitions

"Fidelity has grown in large part due to its large acquisitions," said Keith Briscoe, President of Toronto-based marketing consultancy Brisk Marketing. Briscoe worked previously as the Director of U.S. Marketing for eFunds, a payment processing and consulting firm that was bought by FIS in 2007.

"This really does leave a very short list of major payment processors within the North American space and probably globally as well," Briscoe said.

Briscoe said FIS and Metavante would dovetail - that their strengths were "complimentary and not redundant." FIS said the merger will result in cost synergies (the cost savings that result when companies of complimenting strengths join together) of around $260 million.

"The combined scale, complementary product capabilities and market breadth of these two great companies will drive significant competitive advantages," said William P. Foley II, Chairman of FIS. "This transaction will further strengthen FIS' competitive position as a leading provider of technology solutions and enable us to generate increased value for shareholders and customers."

FIS is a global processor, headquartered in Jacksonville, Fla., that serves more than 14,000 financial institutions. Metavante Technologies, headquartered in Milwaukee, is the parent company of Metavante Corp., which provides banking and payment processing technologies to approximately 8,000 financial services businesses worldwide.

"It's pretty unsurprising that Fidelity would want to acquire Metavante since they're likely looking to increase their role in the credit processing sphere," Briscoe said.

"Metavante has a strong foothold on the credit processing side, and it's probably a strategic move in the direction of being more internationally competitive. For Fidelity it's all about expanding the range of their portfolio and depth of their client base." Representatives of both companies told The Green Sheet an official announcement of the deal is slated for Oct. 1, 2009.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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