Fidelity acquires eFunds for $1.8 billion

By SiliconIndia   |   Friday, 29 June 2007, 07:00 Hrs
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Mumbai: The U.S. based Fidelity National Information Services (FIS) has acquired eFunds Corporation in an all-cash deal valued at approximately $1.8 billion. Under the terms of the agreement, EFD shareholders will receive $36.50 in cash for each share of the common stock. eFunds, headquartered in Gurgaon, has close to 4,000 employees in India. It also has business units in Chennai and Bangalore. It provides 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 acquisition 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 in a press release.

FIS has been operating in India since 2003 and deals in core processing for financial institutions, card issuer and transaction processing services, mortgage loan processing and mortgage-related information products. In February, FIS expanded its offshore presence in the country through the acquisition of California-based Second Foundation, a provider of offshore global information technology services, reported Business Standard. This acquisition added close to 600 employees to the FIS operations. Fidelity Business Solutions India now has centers in Bangalore and Chandigarh.

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