High degree of recurring revenue; High barriers to entry in niche focus; and Consistent growth in EBITDA and free cash flow. Acquisitive; and Relatively high leverage. The ratings on Jacksonville, Fla.-based Fidelity National Information Services Inc. (FIS) reflect its stable recurring revenue base, good cash-flow generation, and the opportunity to realize both product and cost synergies over time. The combination with Certegy Inc. provides risk management solutions and outsourcing services to financial institutions, retailers, mortgage lenders, and real estate professionals. While recent operating performance has been good, with operating margins in the mid-20% area, the company has grown rapidly through acquisitions, and has yet to demonstrate a sustained track record of performance. Growth opportunities include the cross-selling of an integrated
