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Behind Fidelity Information Services’ Inorganic Growth Strategy

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FIS’s focus on acquisitions

Over the years, Fidelity National Information Services (FIS) has followed a consistent inorganic growth strategy in order to boost its offerings and customer base. The company continues to invest heavily in acquisitions. Acquisitions have enabled FIS to broaden its offerings and geographic reach while earning it a spot on the Fortune 500. FIS’s acquisition of SunGard in August 2015 for $9.1 billion was its largest to date. This led to the creation of the largest financial technology provider by revenue.

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Key acquisitions

In 2006, FIS merged with Certegy for $1.8 billion and acquired eFunds in 2007. In 2009, FIS took over Metavante for $2.94 billion in an all-stock transaction. Over the years, FIS has acquired several financial services technology firms such as Capco, mFoundry, and Clear2Pay.

These acquisitions have contributed immensely to the company’s customer base, applications, and services and have also diversified FIS’s revenues, customers, and service offerings. These strategic acquisitions have also enabled FIS to broaden its solutions and scale of operations and to develop its consulting expertise while expanding its customer base and strengthen its competitive position against rivals like Fiserv (FISV) and Jack Henry & Associates (JKHY).

Investors looking for diversified exposure to these stocks could invest in the SPDR S&P 500 ETF (SPY) or the SPDR Technology ETF (XLK).

Now let’s take a more detailed look at the SunGard Acquisition.

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