Fidelity National Financial Announces Acquisition of Majority Stake in Kordoba GmbH & Co. KG
|August 24, 2004|
JACKSONVILLE, Fla., /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE: FNF - News), a provider of products and outsourced services and solutions to financial institutions and the real estate industry, today announced the signing of a definitive agreement to acquire a 74.9 percent interest in Kordoba GmbH & Co. KG ("Kordoba"), a provider of core processing software and outsourcing solutions to the German banking market, from Siemens Business Services GmbH & Co. OHG ("Siemens Business Services"). Siemens Business Services will retain a 25.1 percent ownership position in Kordoba. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close by September 30, 2004.
Formed in 1979 and established as a separate legal entity by its founder Siemens Business Services in 1998, Kordoba is an information technology solutions provider for the financial services industry, with a focus on services and solutions for the banking market. It provides both outsourced and in-house core banking solutions to German savings and commercial banks, including core transaction processing, ATM network solutions, accounting and reporting solutions and a securities processing system. For its fiscal year ended September 30, 2003, Kordoba generated revenue of euro 85.7 million (approximately $105 million at current exchange rates) and EBIT of euro 23.8 million (approximately $29 million at current exchange rates).
"Kordoba is a well-known and respected provider of core banking solutions to the German retail bank market," said FNF Chairman and Chief Executive Officer William P. Foley, II. "This acquisition positions FNF to benefit from the growth opportunity in the German core processing market and provides FNF a significant foundation in this key European economy to assist in the realization of our overall expansion plans throughout Europe. Kordoba is in the process of updating and enhancing its existing system architecture and will benefit from our years of experience developing software products that support some of the largest financial institutions in the world."
"With more than 300 employees, Kordoba is one of the largest banking specific technology companies in Germany and it brings the scale needed to support banks of all sizes as they transform to next generation technology infrastructures," said Michael Sanchez, Chairman of Fidelity Information Services' International Division. "Siemens Business Services' continued ownership position will help ensure continuity with our joint customers, and this partnership creates a formidable combination of products and services capabilities for future clients looking for a low-risk solution to technology transformation."
Source: Fidelity National Financial, Inc.