Metavante Corp.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Fidelity National Information Services, Inc. (NYSE:FIS):

JACKSONVILLE, Fla., Sept. 4 /PRNewswire-FirstCall/ -- Fidelity National Information Services, Inc. (NYSE: FIS) today announced that its shareholders have voted to approve the issuance of FIS common stock in connection with the merger of Metavante Technologies, Inc. into a wholly owned subsidiary of FIS, and the issuance of approximately 16 million shares of FIS common stock to affiliates of Thomas H. Lee Partners, L.P. and Fidelity National Financial, Inc. in connection with the equity investments in FIS to be made by those parties coincidentally with the completion of the merger.

JACKSONVILLE, Fla. and MILWAUKEE, Sept. 3 /PRNewswire-FirstCall/ -- Fidelity National Information Services, Inc. (NYSE: FIS) and Metavante Technologies, Inc. (NYSE: MV) today announced that the companies have received clearance from the U.S. Department of Justice to complete their proposed merger without conditions. Completion of the merger remains subject to receipt of FIS and Metavante shareholder approvals, and other customary closing conditions.

By implementing Metavante's Points2U Plus offering, Danversbank has expanded and enhanced upon the Metavante-powered rewards and loyalty program that's been available to Danversbank customers since 2006. Through its deployment of Points2U Plus, Danversbank now awards cardholders with bonus points for debit card-based transactions made at participating retailers - this is in addition to the points a cardholder already earns by using their Dansverbank-issued debit card. The bank is also leveraging Points2U Plus to award double points for card use during seasonal promotions, as well as to reward cardholders with additional loyalty points for the use of other Danversbank services.

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Buying its next-largest competitor in core processing will make Fidelity National Information Services Inc. a giant in banking technology and position it against the even larger companies it expects to enter the market, reports CardLine sister publication American Banker. The Jacksonville, Fla.-based processor announced a $2.94 billion stock deal for Milwaukee-based Metavante Technologies Inc. yesterday (CardLine, 4/1). The purchase will make Fidelity the world's largest provider of banking technology products and services, Lee Kennedy, Fidelity's president and CEO said during a conference call yesterday with analysts. Fidelity will need that kind of scale to face the newcomers that are eyeing the payments market, he said. "There are going to be larger competitors in this space in the not-so-distant future," including Oracle Corp. and International Business Machines Corp., Kennedy said. Both Oracle and IBM are already in the financial services technology market, he said. "They dabble in this space, but not in a big way yet." He also mentioned Hewlett-Packard Co., whose chief, Mark Hurd, is the former CEO of Dayton, Ohio-based NCR Corp. "Those companies have the capital and resources to move into a market when they want to," says Frank R. Martire, Metavante's president and CEO.

Fidelity and Metavante contend they will be able to generate significant savings by joining forces as technology spending has been pushed to the back burner at many banks, reports CardLine sister publication American Banker. The Jacksonville, Fla.-based processor announced a $2.94 billion stock deal for Milwaukee-based Metavante Technologies Inc. yesterday (CardLine, 4/1). Because the two companies have similar product lines, cutting costs was a big factor in their decision to get together. Executives say they anticipate $260 million of "cost synergies" through consolidating duplicated operations and streamlining product offerings, with $210 million of the savings to be achieved by the end of next year. "Our intention is not to cut cores or core platforms," but rather "the ancillary products around them," Michael D. Hayford, Metavante's chief operating officer and a senior executive vice president, said yesterday during a conference call with analysts. "Those relationships are so strategic for the ability to cross-sell. We don't want to jeopardize any of those." Bankers increasingly will demand integrated data processing systems from well-integrated vendors, says Christine Barry, a research director at Aite Group LLC, a Boston-based consulting firm. "It's almost impossible to deal with multiple vendors because of all the information you have to provide to regulators," she says. "The fewer vendors you deal with, the lower the cost."

Fidelity National Information Services Inc. agreed to acquire Metavante Technologies Inc., a provider of processing services to financial institutions, in a stock deal valued at $2.94 billion

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Metavante Technologies Inc. plans to offer a variety of payment services to PayPal Inc., building on an alliance the Milwaukee-based company announced today. Metavante says its Link2Gov Corp. unit already offers PayPal's Bill Me Later service as a payment option for consumers who want to pay their federal taxes or make other government payments. San Jose, Calif.-based EBay Inc., which owns the PayPal person-to-person online payment unit, bought the instant credit provider Bill Me Later Inc. in November (CardLine, 11/07/08). Link2Gov is one of two companies authorized to process credit and debit card payments on behalf of the Internal Revenue Service. The other is Reston, Va.-based Tier Technologies Inc., which operates the OfficialPayments.com Web site. "We're hoping to do more activities with them going forward," says Frank G. D'Angelo, group president of the Metavante Payment Solutions unit. Metavante's PIN-less debit and pay-anyone services are candidates that PayPal might consider offering to its customers, but D'Angelo says he could not discuss any plans beyond the Link2Gov announcement. Under this agreement, Metavante has added Bill Me Later as a standard payment option on Link2Gov's Pay1040.com Web site. Link2Gov also will offer a Bill Me Later option, along with the credit and debit card and electronic-check payment offerings it provides to other government agencies, including state and local governments. The arrangement makes Bill Me Later credit an option for businesses making quarterly tax payments online, another mainstay of the Link2Gov service. Metavante is not involved in managing the credit risk for consumers using Bill Me Later's deferred payment service, D'Angelo says. "We do the processing, but when you sign up at the Web site you become a Bill Me Later customer," he says, noting the risk is "between Bill Me Later and the customer." Metavante bought Link2Gov in 2005. The business continues to grow, D'Angelo says, declining to provide details of the unit's transaction volumes or the division of the business between income taxes, payroll taxes, and other taxes and fees to federal, state and local governments.

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