Three big private equity firms are cooking up an $11 billion buy out of transaction processing outfit Fidelity National Information Services (FIS) in a sign that the market appetite for large leveraged deal-making is returning.
According to people briefed on the talks, Blackstone Group is partnering with existing Fidelity stakeholder Thomas H Lee Partners and TPG Capital to construct a deal that would be largest leveraged buy-out since the credit crisis struck in 2007.
The bank and card data processor posted $105.9 million in net income last year on nearly $3.8 billion in revenue. The company's largest shareholder is Warburg Pincus, which gained a nearly 11% stake following Fidelity's $2.94 million buy out of Metavante last year.
FIS stock defied the market meltdown on Thursday to close up 10% at $28.68 after the Wall Street Journal broke the story.