The US-based Fidelity National Information Services (FIS), has acquired EFD/ eFunds Corporation in an all-cash deal valued at approximately $1.8 billion (around Rs 7,380 crore). Under the terms of the agreement, EFD shareholders will receive $36.50 in cash for each share of the common stock. | |
| Both these companies have a presence in India. eFunds, headquartered in Gurgaon, has close to 4,000 employees in India. It also has a presence in Chennai and Bangalore. |
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| Similarly, FIS has a presence in India since 2003. In February, FIS expanded its offshore presence in the country through the acquisition of California-based Second Foundation, a provider of offshore global information technology services. |
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| As a result of the acquisition, Fidelity Business Solutions India now has centres in Bangalore and Chandigarh. This acquisition added close to 600 employees to FIS operations. FIS had close to 2,000 India- and Philippines-based staff contracted through strategic partners. |
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| After the acquisition of Second Foundation, the company had said, "FIS plans to continue investing in the development of offshore capabilities to broaden its global service offerings and to reduce internal operating costs." |
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| eFunds is a leading provider of risk management, electronic funds transfer (EFT) services, prepaid card processing, and global outsourcing solutions to more than 10,000 financial services companies in more than 80 countries. |
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| "The acquisition provides FIS with greater scale, extends our presence in the US and international banking markets, and expands the distribution channel for our core processing and risk analytic services," said FIS Executive Chairman William P Foley in a press release. |
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| FIS is a leading provider of core processing for financial institutions, card issuer and transaction processing services, mortgage loan processing and mortgage-related information products. |
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| Approximately 50 per cent of all US residential mortgages are processed using FIS software. FIS maintains a strong global presence, serving more than 7,800 financial institutions in more than 60 countries worldwide. |
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