Fidelity National Information Services ( FIS) said Monday that it established a back-office outsourcing and item processing operation in Brazil.

The newly formed company, Fidelity BPO Brazil, will provide a range of back office processing and support services, check imaging, check clearing and custody, and consumer loan processing through more than 40 processing centers in Brazil.

Unibanco and another Brazil nongovernmental bank signed new 10-year contracts with Fidelity BPO Brazil for these services. To support the outsourcing operation, FIS acquired Proservvi Empreendimentos e Servicos for $2.8 million in cash and the assumption of $13.3 million in debt. The company also expects investment of about $13.6 million to support the working capital needs of the new operation. Revenues from Proservvi clients transferring to Fidelity as part of the transaction totaled about $16.0 million in 2005. The cumulative revenue for new and existing processing contracts is estimated at more than $1 billion over the next 10 years.

The company expects the transaction to be neutral to diluted earnings a share in 2006 and accretive to diluted earnings a share beginning in 2007.

In March, the company announced a joint venture with banks in Brazil to provide end-to-end outsourced credit and prepaid card processing services to Brazilian card issuers.

On Monday, Fidelity National Information rose 65 cents to $34.39.
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