The pending takeover of Fidelity National Information Services Inc. collapsed late Monday, with a Blackstone Group-led consortium dropping its plan to acquire the financial-data processor, according to a person familiar with the situation.
Fidelity National’s board had asked for a “substantial increase” above the $32-per-share bid the private-equity firms had proposed, said a person familiar with the deal talks. The two sides couldn’t reach an agreement on price, this person said, and the investor group backed out of the deal.
Late Monday, Fidelity National shares dropped nearly 10% in after-hours trading, to roughly $26 each. (Fidelity National is unrelated to
The Wall Street Journal reported that Blackstone Group LP was considering the deal along with other firms. Bloomberg News later reported that Thomas H. Lee Partners LP is joining Blackstone in the bid.
Fidelity said the company’s policy is to not comment on speculation about acquisitions.
Fidelity National Information Services, or FIS, provide technology services for financial companies. It was spun off from title insurance company Fidelity National Financial Inc. Another publicly-traded company, Lender Processing Services Inc., was spun off from FIS.
The two Fidelity companies and LPS are all headquartered in Jacksonville, but all three operate independently.
Bloomberg reported that “two people with knowledge of the situation” said the deal is “under discussion and may not happen.”
Recent Comments