FIS™ (NYSE: FIS), one of the world’s largest global providers dedicated to banking and payments technologies, today announced that it has signed a definitive agreement to acquire Capco, a global business and technology consultancy dedicated solely to the financial services industry. The addition of Capco expands FIS’s established international presence and footprint among large U.S. and global financial institutions through the addition of a professional services offering that covers the full financial services value chain.
Capco, with more than 1,000 professionals worldwide, is highly respected for its ability to apply focus and insight to address complex issues and deliver large transformation programmes for its global financial services clients. The company applies deep domain expertise in banking, capital markets, wealth and investment management, finance, risk and compliance, and technology.
"Capco is well known for its thought leadership and client-centric model that distinguishes it from other consulting firms. The addition of Capco will greatly enhance the value we bring to our clients through the powerful combination of FIS’s breadth of technology solutions and Capco’s strong knowledge base and global industry expertise,” stated Frank Martire, FIS president and chief executive officer. “Client focus is one of FIS’s guiding principles and we are excited to deliver on our strategic commitment to provide new areas of expertise from which our clients will greatly benefit.”
Clients of both companies will greatly benefit from this unique combination through:
· Access to industry-focused talent globally
· Ability to leverage best-of-breed, innovative products and solutions for complex architecture and large scale transformation
· Extended global geographic market reach
· Ability to capitalise on both companies’ footprint and deep domain expertise within financial services
Commenting on the transaction, Rob Heyvaert, Capco’s founder and chief executive officer stated: “Combining Capco’s collaborative consulting services with FIS’s industry leading core banking and payments solution suite will enable both organisations to better leverage our individual strengths while providing our respective clients with a unique blend of market expertise, technology solutions and strategic support. The agreement allows Capco to continue to provide our clients an unprecedented level of expertise and service through a truly global presence.”
Heyvaert will continue to lead Capco, reporting to FIS President and CEO, Frank Martire. Capco will retain its distinctive brand identity and the existing management team remains unchanged. Heyvaert becomes a corporate executive vice president of FIS. He also becomes a member of the FIS Executive Management team. In his broader role, he will be responsible for the strategic direction of FIS’s consulting services.
The transaction closing is expected by year end. Capco’s current majority shareholder, Palo Alto-based private equity firm Symphony Technology Group (STG), will not retain any equity or interest in the combined entity on completion of the transaction.
Capco is expected to generate approximately $225 million in revenue in 2010, approximately half of which is generated outside North America. The purchase price includes cash at closing of $292 million and additional consideration contingent upon future performance of the business. FIS will provide additional details regarding the transaction on its third quarter earnings conference call, which is scheduled for 26 October 2010.
