Fidelity National Information Services (FIS - Free Report) announced that it has completed the divesture of its joint venture (JV) with Banco Bradesco in Brazil. The deal was announced in October 2018.
Per the terms, the company also entered into a long-term commercial arrangement with Banco Bradesco on Jan 1, 2019, in order to provide services to the latter.
According to the agreement, Fidelity National will keep offering services to the existing non-Banco customers of the JV. Along with catering the existing services, the company will also provide additional services to Banco, such as software application licensing and management, card portfolio migration, business process outsourcing, fraud management, and professional services.
On the JV’s dissolution, all the assets used for providing services to Banco will be transferred to a new entity, which will be owned by Fidelity National. Notably, this will require the transfer of around 40% personnel of the JV to the newly-formed company. However, the assets, which are used to serve non-Banco customers, will be disposed of.
Through this divesture, Fidelity National will witness ease in business conduct, as well as will be able to offer a better go-to-market strategy. Furthermore, the move will help boost growth prospects of the company over the long run.
To conclude, Fidelity National looks forward to foray into the Latin American market in a bid to improve its growth potential. The company also intends to make continued investments in this region, in an effort to bank on any strategic opportunities.
The company's shares have gained 3% over the past year compared with 4.9% growth recorded by the industry.
Fidelity National carries a Zacks Rank #3 (Hold), at present.
First Bank's (FRBA - Free Report) estimates have been stable for 2018 in the past 60 days. Additionally, the stock has jumped 1.6% in the past two years. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
City Holding Company's (CHCO - Free Report) estimates have been revised 1.2% upward for 2018 over the past 60 days. Also, the company’s shares have risen nearly 1% over the past two years. It holds a Zacks Rank of 1, at present.
Northrim BanCorp's (NRIM - Free Report) estimates have been revised 3.5% upward for 2018 for the past 60 days. In two years’ time, this Zacks #1 Ranked company’s share price has been up more than 5%.
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