Fidelity National Information Services and EFD/eFunds have announced that they have entered into a definitive agreement whereby FIS will acquire EFD in an all-cash transaction valued at approximately $1.8 billion.
EFD is a leading provider of risk management, electronic funds transfer (EFT) services, prepaid card processing, and global outsourcing solutions to more than 10,000 financial services companies in more than 80 countries. The company also provides point-of-sale fraud prevention solutions to retailers and electronic benefits processing services to government entities. In 2006, EFD generated total revenue of $552 million and operating income of $83 million.
"The acquisition of eFunds provides FIS with greater scale, extends our presence in the U.S. and international banking markets, and expands the distribution channel for our core processing and risk analytic services," said FIS Executive Chairman William P. Foley, II. "The addition of EFD's complementary product offerings, including EFT and prepaid card processing capabilities, underscores FIS' commitment to provide the broadest range of products and services to our customers."
"We believe this is a very attractive transaction for our shareholders, " stated Paul F. Walsh, EFD's Chairman and Chief Executive Officer. "We have been very impressed by FIS' success in assimilating a number of acquisitions in a relatively short period of time, and believe that our customers will benefit from the extensive product set and industry expertise that the combined companies have to offer."