Lilia buys FIS 67.58: The 200-day and 50-day moving averages have moved 0.51% higher and 0.94% higher over the past week, respectively.

The deal, which is expected to close in the fourth quarter of 2015, is subject to regulatory approvals and other customary closing conditions, according to the press release. FIS will pay with a combination of cash and stock. Under the terms of the agreement, FIS will be acquiring 100 percent of SunGard's equity, and assume SunGard's debt, which will be refinanced, according to the press release. These solutions and services include retail and corporate banking, payments, risk management, asset solutions and insurance. The two companies have complementary technology solutions and services, according to the press release.


Blondell:
Given the full valuation based on earnings a few years down the road, and the fairly elevated leverage ratios, I see few triggers which could potentially push shares higher in the short- to medium-term.

Claretta:
Shares now exchange hands at roughly 20-22 times after taking into account the synergy estimates by 2017. These are still elevated multiples in my opinion, certainly as leverage is very high.

Madlyn:
This means that most of the benefits are priced in already, resulting in little opportunities for investors who contemplate to take a position at current levels.

Han:
In response to the fair multiples paid, the targeted synergies, and the solid track record with regards to previous deals, investors have pushed up the valuation of FIS by roughly $1.5 billion.

Exie:
The $200 million in synergies could be worth $2 billion if these benefits are awarded a 10 times multiple.

Amy:
After taking into account synergies, FIS is paying a 9 times EBITDA multiple, which seems attractive given that its own shares trade at 12 times EBITDA.

Ciera:
Another benefit is that stability allows balance sheets to become more leveraged, as creditors feel more comfortable with such business models as well.

Carleen:
This is even the case as growth is not that inspiring.

Vivienne:
With investors favoring predictability over surprises, they are willing to attach higher valuation multiples to more predictable businesses.

Yolanda:
Their strong intellectual property, small range of large competitors and recurring revenue streams make them predictable.

Fidelity National Information Services (NYSE:FIS)
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