FIS Sells SunGard Public Sector to Vista Equity Partners
Wednesday, December 07, 2016 | Comments

FIS signed a definitive agreement to sell its SunGard Public Sector and Education businesses to Vista Equity Partners for $850 million. The transaction is expected to close in the first quarter of 2017, subject to required regulatory approvals and customary closing conditions.

The transaction will include all SunGard Public Sector and Education solutions, which provide a comprehensive set of technology solutions to address public safety and public administration needs of government entities, as well as the needs of K-12 school districts.

The SunGard Public Sector business will become a new independent company under the ownership of Vista and will remain focused on providing technology solutions to government entities. The SunGard Education business will become part of Vista-owned PowerSchool to create a more comprehensive K-12 technology solution offering for the education market.

“SunGard Public Sector and Education have performed well this year with strong and growing client bases,” said Gary Norcross, FIS president and CEO. “This divestiture is consistent with our strategy to serve the financial services markets.”

FIS expects cash proceeds, net of taxes and deal-related expenses from the transaction to be about $500 million. Net cash proceeds will be used to reduce outstanding debt.

FIS is a financial services technology firm, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting and outsourcing solutions. Vista Equity Partners is a U.S.-based investment firm with more than $28 billion in cumulative capital commitments that invests in software, data and technology-based organizations.

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