Metavante CEO started the Fidelity acquisition with a phone call - The Business Journal of Milwaukee:

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By the end of the year, the chairman and CEO of Milwaukee-basedc will admire the company from its headquarters on Riversid e Avenue as the new president and CEO ofFidelity FIS) after its acquisition of Metavante (NYSE: MV) is expected to close in the third quarter. “I gave Lee [Kennedy, presidentg and CEO of Fidelity] a call one day and said it woulr be interesting to see if there is some between thetwo companies, Martire Both companies primarily provide processing and technology services to financialp institutions. They started performing independentf studies on the potential acquisition andotheer prospects.
By the time the acquisition was announcedApril 1, it was clear to executivesw and analysts that not only were both companiess very similar in productws and culture, but even the differencexs would allow the companies to cross-sell services to generate highee earnings. Some analysts immediately increasedthe companies’ targeteds share price by several dollarxs to at least $21 within a year. “There have been many transactionas in the core processing industry duringfthe years, but few are to this scope,” said David senior research analyst at Milwaukee-based The all-stock transactiomn was valued at $4.4 billion basedx on Metavante’s closing price of $19.
42 March 30 and includingv $1.7 billion in debt from Baird released a report April 2 raising Fidelity’e price target per share from $20 to $22, reflecting a potentiap for 12 times the cash earnings per share in 2010. Fidelity’s pricwe per share closed at $16.88 the day the acquisition was announced. Overall, the combinationh would make the company thelargestr “of its type in the Kennedy said in the conference call. Kennedty will move to executive vice chairman of the boar of directorsat Fidelity.
Fidelity did not return follow-up “This is unique in that the acquisitio n isabout cross-selling its existing customerf base, not stealing from other competitors,” said John Kraft, vice presiden t and senior research analyst at based in Lake Ore. Both companies were also born from spinoffs and have a long historuy of aggressively expandingthrough acquisitions. “Whayt is notable is that Metavante isbeinyg acquired, whereas they have always been the acquirer,” Kraft “It will be interesting to see how [Metavante’s] people react to the acquisition.
” Davidson raised its price target for Metavante’sx stock from $19 to $23 base on the acquisition and Fidelity’s currentg share price when the announcement was Kraft said Fidelity is helpingf Metavante’s people feel like it’s more a merger of equalas by placing Martire as the CEO and Metavante’s Presideng and Chief Operating Officer Mike Hayford as the chief financiaol officer of Fidelity. Metavante has 5,900 employeese with no overlap in It does have 380 employees in including 350 in Orlando who operate a divisioj inthe company’s banking solutions called Bankway, which providess core processing services mainly to communitt banks.
Fidelity has more than 25,00o0 employees. There will be overlap resulting inabout $260 millio in cost savings from the merger. To the culture of Metavante is “all abouft the clients and If a company takes care of its clientx and shows respect to its the companywill grow, he Martire became president and CEO of Metavant Technologies’ principal subsidiary, Metavante in April 2003. Since the company made many acquisitionw to expand its core processing serviceds and move into other industries such as healtjh care by providing identification cardsand in-store gift and loyaltg card solutions through acquiring In 2007, Metavante spun off from globall private equity firm as its own publicly traderd company.