FIS Closes Deal To Sell A Majority Stake In Capco

Global financial services technology company FIS announced Monday (July 31) it has completed the sale of its majority ownership stake in Capco Consulting (CCOEF) to Clayton, Dubilier & Rice, LLC (CD&R).

In a news release, FIS said it received cash proceeds of $469 million — or $441 million net of taxes and deal-related expenses — in the transaction. The sale establishes Capco Consulting as an independent company. 

FIS said CD&R funds purchased an approximately 60 percent equity interest in Capco, which includes other consulting-related assets. FIS retains an approximately 40 percent equity interest in Capco, the company noted in the press release.

FIS announced in May that Capco, the public brand for FIS’ management consulting offering, was on the market. Capco is a global consulting organization specializing in business, digital and technology consulting services for the financial services industry. Upon closing, Capco will become a privately-held company operating under the Capco name.

Russ Fradin, CD&R operating partner and the former chief executive officer of SunGard, will serve as chairman of the independent Capco Consulting company. Lance Levy will continue to serve as Capco CEO. 

“CD&R’s investment will enhance Capco’s ability to grow and expand its market offerings while maintaining its market-leading transformation services,” said Gary Norcross, president and chief executive officer of FIS. “FIS’ ongoing minority ownership enables our clients to continue to benefit from the relationship, while we focus investment on our IP-led solutions.”

In late June, FIS and ATM owner and operator Cardtronics announced plans to integrate FIS Cardless Cash access across Cardtronics’ ATM fleet in the United States. In a press release announcing the news, FIS said the FIS Cardless Cash, which leverages the FIS Mobile Banking app, will enable banking customers to withdraw funds from ATMs without having to use a plastic card.

The companies said the rollout will take 24 months, noting the FIS Cardless Cash functionality at Cardtronics ATMs will debut cardless cash access at some of the largest retailers in the United States. It will also enable financial institutions to offer in-network use of cardless cash functionality at both branch and retail ATMs.