Industry News

Fidelity National Information Services on acquisition streak

Buys AFT, announces $1.8 billion deal to purchase EFD

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Fidelity National Information Services Inc. says it has agreed to buy EFD/eFunds Corp. for $1.8 billion -- the second acquisition announced by the company this week. FIS, which provides processing, information services and outsourcing for financial institutions, mortgage lenders and retailers, said it will finance the acquisition of EFD with cash on hand and long-term debt. EFD, which provides risk management, electronic fund transfers, prepaid card processing and global outsourcing for financial services companies in more than 80 countries, generated $552 million in revenue in 2006. EFD also provides point-of-sale fraud prevention to retailers and electronic benefits processing services to government entities. FIS said the acquisition will produce $65 million in annual cost savings, which, along with synergies in the two company's products and services, will boost profits in 2008. The deal is expected to be completed by the end of the third quarter, pending approval by regulators and...