SunGard acquisition boosts earnings for FIS
Shares in financial tech firm FIS climbed in New York as the business reported higher revenue, boosted by its earlier acquisition of SunGard.
First quarter sales for FIS, a banking and payments specialist, totaled $2.2bn between January and March, up from $1.6bn in the first quarter of 2015.
Adjusted earnings before tax increased to $637m in the first quarter, from $589m in the prior year period.
“The addition of solutions from the SunGard portfolio and synergy attainment significantly expanded margins,” said Gary Norcross, president and chief executive officer, FIS.
“We are pleased with our strong performance to start the year, which was driven by solid sales execution, high-quality recurring revenues, and earnings.”
SunGard, which supplies a range of data and technology tools to asset managers and banks, was bought by FIS for $9.1bn last year.
At the time, FIS said the deal combined "enterprise banking and payments expertise with well-established solutions in capital markets, risk management and investment operations".
Shares in FIS rose 6% to $71.36 in afternoon trading on the New York Stock Exchange.
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