The payment space is hot. With FIS’s recent $2.94B acquisition of Metavante will create a company w/ combined revenue of over $5B. Good move by FIS. According to the deal summary, drivers were:
•Enhances growth prospects
•Generates substantial synergies
•Drives margin expansion
•Increases financial flexibility
•Accretive to cash earnings
•Creates significant shareholder value
Expect $260MM expense save in combined entity. FIS will be a key channel to deliver service to banks outside the top 20. External vendors should be ramping up there alliance plans w/ FIS.