Fidelity National Buying Metavante For $2.94B

The combined board will be made up of six Fidelity National directors and three Metavante directors.

Along with the acquisition, Fidelity National said it will receive equity investments from other firms, including affiliates of private-equity firm Thomas H. Lee Partners LP and title and specialty insurance firm Fidelity National Financial Inc. Fidelity National Information Services will issue about 16 million shares for those new investments.

Metavante shareholders will receive 1.35 shares of Fidelity National stock for each share of Metavante they own. Fidelity National will issue about 162 million shares as part of the acquisition.

Based on Fidelity National's share price, the deal values Metavante stock at a 23 percent premium over its Tuesday closing price of $19.96. Fidelity National shares closed Tuesday at $18.20.

Shares of Fidelity National fell $1.32, or 7.3 percent, to close $16.88 Wednesday, while shares of Metavante jumped $1.96, or 9.8 percent, to $21.92.

Following the announcement of the deal, credit ratings agency Standard & Poor's affirmed its "BB+" rating for Fidelity National and placed Metavante's "BB" credit rating on a positive watch — a short-term view of a company's rating.