The deal, expected to close by the end of the year, sees Capco majority shareholder, Palo Alto-based private equity firm Symphony Technology Group, bought out.

The purchase price includes cash at closing of $292 million and "additional consideration contingent upon future performance of the business".

Capco is a global business and technology consultancy dedicated to the financial services industry, employing over 1000 staff in offices throughout Europe, North America and India. It is expected to make around $225 million in revenues this year.

FIS says the acquisition expands its international footprint with services covering banking, capital markets, wealth and investment management, finance, risk and compliance and technology.

Capco founder and chief executive officer Rob Heyvaert will continue to lead the business, reporting to FIS President and CEO, Frank Martire and also becomes a corporate EVP of the parent. The rest of the Capco management team will stay in place.

Says Heyvaert: "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."

Earlier this year FIS was itself a takeover target, with a group of private equity firms eyeing a $15 billion leveraged buyout. However, talks broke down, prompting the vendor to embark on a leveraged recapitalisation with a share repurchase.