• Sector: Industrial & Business Services
  • Geography: United States
  • Stage: Growth
  • Investment Year: 2007
  • Exit Year: 2013
  • Website Link

Metavante / Fidelity National Information Services

In 2007, Warburg Pincus invested in Metavante which was subsequently acquired by Fidelity National Information Services (FIS) in 2009. At the time of Warburg Pincus’ initial investment, the firm’s view was that Metavante was a market leader with best-in-breed products in an industry with positive fundamentals, poised to benefit from the continued transaction of payments from paper to electronic. Warburg Pincus believed that the transaction processing industry was well-positioned for consolidation, with Metavante potentially a consolidator or a target for consolidation. Warburg Pincus first approached Marshall & Ilsey Corporation (Metavante’s parent company) in mid-2006 to recommend a sponsor spin-off transaction. Warburg Pincus’ proactive approach and sponsored spin-off structure resulted in a proprietary investment opportunity. Subsequently, Warburg Pincus worked with Metavante’s management to complete the carve-out and create an independent board of directors and worked with lenders to capitalize the new entity. Thereafter, as the financial crisis set in, Warburg Pincus and Metavante worked together analyzing the financial and strategic rationale of various alternatives, resulting in the FIS transaction. The merger of the two companies created the largest transaction processor for financial institutions globally with the most comprehensive range of products and services and with significant cost and revenue synergies. Warburg Pincus assisted in working through the merger negotiations and new capital structure for the combined company, which yielded a highly accretive transformational merger for all parties involved in the transaction. Warburg Pincus continued to assist the company with international client introductions, financial and strategic guidance and capital markets matters. Warburg Pincus fully exited FIS in 2013.

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