A handful of private equity firms (including Bain Capital, Blackstone, Goldman PE, KKR, TPG, SilverLake) teamed up to buy SunGard back in 2005. A decade later they will finally get to cash out as Fidelity National has bought the company (also its rival) for $9.1 billion. It appears Fidelity National was seeking access to SunGard's lucrative trading and money management clients. Over the years, many parts of SunGard have been sold off and dividend recaps have occurred----experts estimate the total return to the initial PE investors will be about 1.7x.
Fidelity National said the deal, for which it will pay 45 percent in cash and 55 percent in stock, would create a company with more than $9.2 billion in annual revenues and would immediately add to its earnings per share. Silver Lake Partners, TPG Capital, Bain Capital, Blackstone Group (BX.N), Goldman Sachs Capital Partners, KKR & Co (KKR.N) and Providence Equity Partners Inc bought SunGard 10 years ago for $11.4 billion, including about $500 million in debt. They will now become shareholders in the combined publicly listed company.