Press Releases

FIS Makes Strategic Commitment to Consulting Services with Acquisition of Capco

Contact
Marcia Danzeisen, Senior Vice President FIS Global Marketing and Communications, 904.854.5083, marcia.danzeisen@fisglobal.com
Mary Waggoner, Senior Vice President FIS Investor Relations, 904.854.3282, mary.waggoner@fisglobal.com
Loretta Mock, Cognito Media, 646.726.7886, Loretta.Mock@cognitomedia.com
Enda Joyce, Hanover Communications, +44 (0)7980 916 827, ejoyce@hanovercomms.com

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’ 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 programs 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’ 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’ 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 capitalize on both companies’ footprint and deep domain expertise within financial services

Commenting on the transaction, Rob Heyvaert, Capco founder and chief executive officer stated, “Combining Capco’s collaborative consulting services with FIS’ industry leading core banking and payments solution suite will enable both organizations 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’ 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 October 26, 2010.

About Capco
Capco is a global business and technology consultancy dedicated solely to the financial services industry. Our 1,000 professionals combine innovative thinking with our unrivalled first-hand industry knowledge to offer our clients consulting expertise, complex technology and package integration, and managed services to move their organizations forward.

Through our collaborative and efficient approach, we help our clients successfully increase revenue, manage risk and regulatory change, reduce costs and enhance control. We specialize in banking; capital markets; wealth and investment management; finance, risk & compliance; and technology. We serve our clients from offices in leading financial centers across North America and Europe. To learn more, visit our web site at www.capco.com.

About FIS
FIS (NYSE: FIS) is one of the world’s largest global providers dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. FIS is a member of Standard & Poor’s 500® Index and consistently holds a leading ranking in the annual FinTech 100 list. For more information about FIS, visit www.fisglobal.com.

FIS Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about our expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. These statements relate to future events and our future results, and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements.

Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include without limitation: changes and conditions in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes and conditions in either or both the United States and international lending, capital and financial markets; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in or new laws or regulations affecting the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries; changes in the growth rates of the markets for core processing, card issuer, and transaction processing services; failures to adapt our services and products to changes in technology or in the marketplace; internal or external security breaches of our systems, including those relating to the theft of personal information and computer viruses affecting our software; our potential inability to find suitable acquisition candidates or finance such acquisitions, which depends upon the availability of adequate cash reserves from operations or of acceptable financing terms and the variability of our stock price, or difficulties in integrating past and future acquired technology or business’ operations, services, clients and personnel; competitive pressures on product pricing and services including the ability to attract new, or retain existing, customers; an operational or natural disaster at one of our major operations centers; and other risks detailed in “Risk Factors” and other sections of FIS’ Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and other filings with the SEC. Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise.

For more information FIS contacts:

Marcia Danzeisen
904.854.5083
Senior Vice President
FIS Global Marketing and Communications
marcia.danzeisen@fisglobal.com

Mary Waggoner
904.854.3282
Senior Vice President
FIS Investor Relations
mary.waggoner@fisglobal.com

For more information Capco contacts:

North America

Loretta Mock, 646.726.7886
Cognito Media
Loretta.Mock@cognitomedia.com

Europe and Asia

Enda Joyce, +44 (0)7980 916 827
Hanover Communications
ejoyce@hanovercomms.com

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