Fidelity National Information Services Inc. said Monday that it has agreed to buy the risk-assessment software provider Compliance Coach Inc.
FIS, of Jacksonville, Fla., said the acquisition would strengthen its compliance capabilities by giving it ownership of products used today by seven top-10 banks and about 1,500 other clients.
Kay Nichols, FIS' executive vice president of channel solutions, wrote in an e-mail that FIS can work with its existing clients "to see where major areas of exposure might be, giving recommendations and tools to fill in the gaps, and then offering ongoing education and reporting capabilities for evolving compliance regulations."
The deal is expected to close within 30 days. No price was given.
Wesley Wilhelm, a senior analyst at Aite Group LLC said it would be a smart acquisition.
"Compliance becomes a more hot-button issue" as regulators sharpen their focus on the banking world, Wilhelm said.
Purchasing a compliance company "makes perfect business sense" for FIS, he said. "You're not going to run a bank without a compliance department."
Operating within FIS would likely improve Compliance Coach's target's prospects, Wilhelm said.