(Reuters) - Software maker Fidelity National Information Services Inc (FIS)(FIS.N) is to sell its SunGard Public Sector and Education unit to Vista Equity Partners for $850 million to focus on making software for the financial industry.
Reuters had reported in March that FIS was looking for buyers for the unit, which makes software used to help municipalities communicate and plan meetings with residents as well as to manage prisons and for public safety.
FIS said on Wednesday that it expects the sale to generate net proceeds of about $500 million, which would be used to reduce debt.
The sale shows the Jacksonville, Florida-based company’s aim to focus on its core competence of making software used for retail and enterprise banking, payments as well as in the capital markets, wealth management and insurance industries.
The SunGard Public Sector business will become a new independent company under the ownership of Vista, while the SunGard Education business will become part of Vista-owned PowerSchool, FIS said.
FIS is being advised by Barclays and Bank of America Merrill Lynch.
Reporting by Nikhil Subba in Bengaluru; Editing by Savio D'Souza