Blackstone Group one on the world’s largest equity companies along with Thomas H.
Lee and TPG Capital plan to take over Fidelity National Information Services Inc.
The sources of this information come from people who are a part of this deal who refuse to reveal their identity and there is speculation that the deal might not even proceed any further. TPG and Thomas H. Lee refused to comment and so did Blackstone and Fidelity National spokesperson in regard to the transaction.
Private equity firms are taking advantage of a rebound in leveraged lending to put their capital to work after a two-year drought in deals. LBO funds worldwide have about $500 billion Preqin Ltd published a report about $500 billion in unused funds with an increase from $3.9 billion to $22 billion in takeover expenses this year in the industry in comparison to the last.
Fidelity National increased 10% from $2.68 a share $28.68 at the New York Stock Exchange. The company is valued at $10.8 billion in the year after its trading.
Thomas H. Lee Partners owns 4% of Fidelity National with Warburg Pincus the largest shareholder. Warburg Pincus owns 11% shares according to a survey by Bloomberg.
Fidelity National had a $105.9 million profit in 2009 on $3.77 billion revenue. The company provides cards for over 14,000 groups and institutions.
John Gallagher of Deutsche Bank and John Yiannacopoulos of the Bank of America Corp. are in charge of the LBO’s and refused to comment on the issue.