FIS To Sell 60% Equity Interest In Capco; To Receive $477 Mln In Cash Proceeds

(RTTNews) - FIS (FIS) and Clayton, Dubilier & Rice announced a definitive agreement in which FIS will sell a majority ownership stake in Capco to CD&R, establishing Capco as an independent company. FIS will sell approximately 60 percent equity interest in its Capco business to CD&R funds and receive net cash proceeds of $477 million. Upon closing, FIS will retain approximately 40 percent equity interest in the business.

FIS expected the consulting business to contribute $0.11 - $0.12 to second half 2017 adjusted EPS and anticipates cash proceeds, net of taxes and deal-related expenses, of approximately $445 million.

Capco, the public brand for FIS' management consulting offering, 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. CD&R Operating Partner Russ Fradin will serve as Chairman of the independent Capco company. Lance Levy will continue to serve as Capco CEO.