Fidelity National Financial Announces Closing of Investment in Covansys
September 16, 2004
JACKSONVILLE, Fla., /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE: FNF), has closed the previously announced Stock Purchase Agreements between its subsidiary, Fidelity Information Services, Inc. ("FIS") and Covansys Corporation ("Covansys") and Covansys Founder and Co-Chairman of the Board Rajendra Vattikuti.
Under the terms of the Stock Purchase Agreements, FIS purchased 8.7 million common shares from Covansys and 2.3 million common shares from Mr.Vattikuti, for a total purchase price of $121 million. FIS now owns approximately 29% of Covansys' common stock. FIS also received four tranches of warrants, each for one million common shares, with strike prices between $15 per common share and $24 per common share. Additionally, William P. Foley, II, Chairman and Chief Executive Officer of FNF and Frank R. Sanchez, President, Strategy and Product Development Division of FNF have joined the Board of Directors of Covansys. Additionally, Gary C. Wendt has joined the Covansys Board of Directors as an FNF nominated independent director.
Source: Fidelity National Financial, Inc.