Fidelity establishes back office processing operation in Brazil
17 July 2006 | 5289 views | 0
US-based Fidelity National Information Services has established a back office outsourcing and item processing operation in Brazil and has signed two banks to the services.
This new outsourcing operation, which will be named Fidelity BPO Brazil, will provide a comprehensive range of back office processing and support services, cheque imaging, cheque clearing and custody, and consumer loan processing through more than 40 processing centres in Brazil.
To support the outsourcing operation, Fidelity has acquired Proservvi Empreendimentos e Servicos for $2.8 million in cash and the assumption of $13.3 million in debt. Fidelity says it is investing a further $13.6 million to support the working capital needs of the new operation.
Revenues from Proservvi clients transferring to Fidelity as part of the transaction totalled approximately $16.0 million in 2005. The cumulative revenue for new and existing processing contracts is estimated at more than $1.0 billion over the next 10 years.
Fidelity says it has already inked 10 year contracts with two banks, including including Unibanco, for the services.
In March FIS signed a definitive agreement with Brazil's Banco Bradesco and Banco ABN Amro Real to form a joint venture company that will provide outsourced processing services to card issuers across the country.
Michael Sanchez, president of the FIS international division, says: "Today's announcement, coupled with the recent announcement of the creation of Fidelity Processadora e Servicos SA, for card and payment services, will position FIS as the leading credit card processor and back-office outsourcing provider in Brazil."