FIS To Enter Long Term Commercial Agreement With Banco Bradesco - Quick Facts

(RTTNews) - FIS (FIS) announced it has signed an agreement to unwind its joint venture and enter into a significant long term commercial agreement to provide current and new solutions and services to Banco Bradesco, one of the largest financial institutions in Brazil. The annualized expected impact of the deconsolidation of financials from the dissolution of a JV in which FIS owned 51% and Banco Bradesco owned 49% would be to reduce FIS reported revenue by approximately $200 million. FIS expects a one-time non-cash pre-tax charge of approximately $100 million, primarily due to the write-off of goodwill and intangibles associated with the transaction, which would reduce net earnings attributable to common stockholders. FIS said, on a non-GAAP basis, the deconsolidation of financials is not expected to have an impact on organic revenue growth, adjusted EPS or free cash flow.

Without the JV structure and overhead, Banco Bradesco will achieve attractive cost savings, and FIS will benefit from its ability to compete independently in the market.