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.
Website Case Studies Disclaimer
The investments described in the case studies are provided for illustrative purposes only and are not, and do not purport to be, representative of all investments, or all types of investments, previously made by Warburg Pincus, or indicative of the performance of all prior Warburg Pincus investments. The case studies have been selected on the basis of objective criteria that Warburg Pincus believes are representative of the firm’s experience partnering with portfolio company management teams, and of the sectors, stages, strategies and/or geographies in which the firm invests. The information provided in the case studies are not necessarily an indication of future results, and may not be relied up for any purpose. Warburg Pincus’ current or future portfolio companies may differ materially in size, type, performance and other characteristics from the investments presented in the case studies. Further, references in this case study should not be construed as a recommendation or offer to buy or sell any particular security or to make any particular investment.