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Fidelity National Said in Exclusive Talks to Acquire SunGard

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Fidelity National Information Services Inc., the payment-services provider, is in exclusive talks to acquire SunGard Data Systems Inc. for more than $8.3 billion, according to people familiar with the matter.

While a deal isn’t imminent, Fidelity would pay with a mix of cash and stock if a transaction occurs, the people said, asking not to be identified because the discussions are private. The split would be approximately 50 percent cash and 50 percent stock, one of the people said.

SunGard, which makes software for financial institutions, is owned by seven private-equity firms, including Silver Lake Management, Providence Equity Partners and KKR & Co. The Wayne, Pennsylvania-based company filed to go public in June.

Shares in Jacksonville, Florida-based Fidelity National rose as much as 3.7 percent to $65.57 at 11:16 a.m. in New York.

Representatives for Fidelity National and for co-owners Bain Capital, Providence, Silver Lake and TPG Capital declined to comment. Representatives for Blackstone Group LP and KKR weren’t immediately able to comment, while officials at Goldman Sachs Group Inc. didn’t immediately respond to requests for comment.

SunGard was acquired by the private-equity firms for about $11 billion in 2005, when leveraged buyouts by large groups of investors were more popular. The firms have held on to SunGard through the financial crisis to allow banks, which use its financial services, to recover.

Fidelity National Financial Inc. spun off Fidelity National Information Services in 2006.


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