Fidelity National Information Services Inc., the payment-services provider, is in exclusive talks to buy SunGard Data Systems Inc. in a deal with an enterprise value of more than $8.3 billion, people familiar with the matter said.
While a deal isn't imminent, FIS would pay with a mix of cash and stock if a transaction occurs, said the people, who asked 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. The company's long term debt was $4.67 billion at the end of March, according to regulatory filings, while cash was $555 million.
Shares in Jacksonville, Florida-based FIS climbed 4.1 percent to $65.85 at the close in New York, giving it a market value of almost $19 billion.
Representatives for FIS and for SunGard co-owners Bain Capital, Providence, Silver Lake, TPG Capital, Blackstone Group LP, KKR and Goldman Sachs Group Inc.'s private-equity arm declined to 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.