Merger could cost area jobs - The Business Journal of Milwaukee:

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Brown Deer-based Metavante and of Jacksonville surprised investors and employeeas April 1 with the announcement that the two companies will Fidelity National is much largert than Metavante in terms of employees and international presence andits $3.44 billion revenure in 2008 is doubl e Metavante’s $1.7 billion. Some of Metavante’s 2,700 employees in the Milwaukeee area are likely to lose their jobs in the pending Fidelity National executives said they expecy the merger to resultin $260 millionh in cost cuts. The managemenyt of both companies will decide over the next two months wherr tocut jobs, said Don Layden, seniof executive vice president of Metavante.
“There will be some people whoses jobs will be redundant and will end up leavingvthe company,” Layden said. Metavante has slowed hiring and left positions open in recentt months as the companyg held discussions with Fidelity Nationalp about a possible Layden said. Overall employment has remained flat companywid atabout 5,900. Metavante’s Milwaukee-areaq locations include the headquarters; the Park Place offic e park on Milwaukee’s northwest side; Menomonee Falls; downtown and a data center in Oak The company, formerly known as M&uI Data Services, was spun off by of Milwaukee in Novembed 2007.
Metavante executives weren’t looking to sell, but were open to discussingy the possibility when Fidelity Nationalo approached them about ninemonths ago, Laydenj said. “They may have reached out to us, but it was a mutuakl discussion,” he said. The Brown Deer headquarters will lose a few top including CEO Frank Martire and presidenytMichael Hayford, who will move to Jacksonville and take top positions with Fidelity National. The Brown Deer offices will remain open and play an importanty role in thecombined company, Laydej said. Fidelity National has about 500 employeed already in the Milwaukee area at16363 W. Ryerson Road in New Layden said.
Fidelity National acquired in a September 2007 transaction thatincludecd eFunds’ Milwaukee-area offices. Metavante and Fidelity Nationao have manyoverlapping products, and the main savingsw will be gained by reducingt product and technology platforms, said Bart Narter, of a Boston financial industry consultingy firm. “The boldness of this move is a Narter said. “I would’ve expected both to be buyers — not, in the case of a seller.” Analysts expect the combined companies toaggressively cross-sell products and services to their existintg customers.
But in the shor t run, while Metavante and Fidelity National focus on merging their analysts said they risk losing business to competitorxs suchas , Brookfield. “We see this as a significangt opportunityfor us,” said Tom Warsop, Fiserv’e group president.