US-based Fidelity National Information Services has signed a definitive agreement with Brazil's Banco Bradesco and Banco ABN Amro Real to form a joint venture company that will provide outsourced processing services to card issuers across the country.
Under the agreement Fidelity will hold a 51% share in the new company, while the remaining 49% will be owned by Banco Bradesco and Banco ABN Amro Real.
The new company, which will be called Fidelity Processadora e Servicos, will provide card processing and support services, including call centre management, back office support, card transaction processing, risk management and collection services to Brazilian card issuers.
The venture is expected to generate revenue of approximately $2 billion over the next 12 years.
Fidelity says it will invest $100m in the venture through to 2008, including $25m in 2006, and will transfer ownership of its existing Brazilian card operation to the new company. Details of the banks' investments were not disclosed.
The vendor says it expects to convert all card portfolios over the next 24 months. Once the conversions are completed, Fidelity says it will process over 20 million cards in Brazil.
Marcos Matioli, executive director of Banco ABN Amro Real, says when the conversion is complete, this joint venture company will be the largest third party card processor in Brazil.