Industry News

Fidelity closes deal with outsourcing co.

Now owns 29% stake

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Fidelity National Financial on Wednesday announced the closing of its purchase of 29 percent equity stake in Covansys, a global provider of strategic outsourcing and integration services that has operations in India. Under the terms of the agreement, Fidelity's subsidiary, Fidelity Information Services, bought 8.7 million common shares from Covansys and 2.3 million common shares from Rajendra Vattikuti, Covansys founder and co-chairman of the board. Additionally, FIS received four tranches of warrants, each for 1 million common shares, with strike prices between $15 per common share and $24 per common share. Fidelity Chairman and CEO William P. Foley II and Frank R. Sanchez, president of Fidelity's strategy and product development division, have joined Covansys' board of directors. Fidelity announced the deal at the end of April, when it also announced it had signed a $150 million outsourcing contract with Covansys. Covansys employed more than 2,500 "billable professionals" at de...