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FIS To Acquire Capco For Around $300 Mln - Update

Fidelity National Information Services, Inc. or FIS (FIS) Tuesday inked a deal with Private equity firm Symphony Technology Group to buy Symphony's portfolio company, Capco for around $300 million, with a view to expand its international presence.

Capco is a global business and technology consultancy dedicated solely to the financial services industry, with more than 1,000 professionals worldwide. Capco currently expects to generate around $225 million in revenue in 2010, approximately half of which is generated outside North America.

According to Jacksonville, Florida-based FIS, the acquisition of Capco helps it to increase its presence among large U.S. and global financial institutions through the addition of a professional services offering that covers the full financial services value chain.

As per the deal, FIS would pay $292 million in cash and additional consideration contingent upon future performance of the business.

FIS, which provides banking and payments technology solutions, processing services, and information-based services said Capco will retain its distinctive brand identity and the existing management team will remain unchanged.

After the completion of the deal, which is expected to close by December, Rob Heyvaert, Capco founder and chief executive officer will be appointed as corporate executive vice president of FIS. Heyvaert, who also becomes a member of the FIS Executive Management team, will be responsible for the strategic direction of FIS' consulting services.

Once, the transaction is completed, Capco's current majority shareholder, Palo Alto-based Symphony, will not retain any equity or interest in the combined entity on completion of the transaction, the company noted.

FIS, which serves more than 14,000 institutions in over 100 countries posted net earnings of $101.3 million or $0.42 per share for the full year ended 2009 on revenues of $3.77 billion.

FIS is currently trading at $28.24, down $0.20 or 0.70% on a volume of 360,320 shares on the NYSE.

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