FIS has announced that it has signed a definitive agreement to acquire Capco, a global financial services business and technology consultancy.
“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.”Capco has more than 1,000 professionals worldwide.
Rob Heyvaert, Capco founder and chief executive officer, 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.