FIS predicts 3-4% growth for 2016
FIS, the financial services technology provider which acquired SunGard at the end of 2015, has predicted organic revenue growth of between 3% and 4% in 2016. It reports that 2015 revenue grew by 3% over 2014 to reach US$6.6 billion.
“The resilience of our business model characterised by highly recurring revenues and operational efficiencies allowed us to deliver strong cash flows and earnings,” said Gary Norcross, president and chief executive officer, FIS. “The end-of-year closing of the SunGard acquisition allows us to leverage our newly expanded IP-led solutions portfolio to create deeper and broader relationships with our more than 20,000 clients. The acquisition creates a solid foundation for meeting our 2016 goals and driving long-term value creation for our shareholders.”
Its Integrated Financial Solutions division saw 2015 revenue increase 2% on a reported basis to US$3.93 billion from US$3.86 billion in 2014. The Global Financial Solutions division increased revenue by 6% to $2.72 billion from $2.56 billion in the prior year.
The firm’s outstanding debt grew to approximately US$11.51 billion compared from US$5.07 billion as of year-end 2014, reflecting the incremental debt issued in conjunction with the SunGard acquisition.
Reported by Dan Barnes