Fidelity National to Spin Off Merchant Business

By Dean Seal

Fidelity National Information Services Inc. is planning to spin off the Worldpay merchant-solutions business it acquired in 2019.

Financial-services-technology-company Fidelity said Monday that it is working to complete the spinoff within the next 12 months, and that it would maintain a strong commercial relationship with the newly separated company.

Charles Drucker, the former chief executive of Worldpay, has been tapped to serve as a strategic advisor during the separation and is expected to return to the helm of Worldpay when the spinoff is completed.

Fidelity Chairman Jeffrey A. Goldstein said the board has concluded that a spinoff would improve both companies' performances and unlock shareholder value.

"The pace of disruption in payments is rapidly accelerating, requiring increased investment in growth and a different capital allocation strategy for our Merchant Solutions business," he said.

Fidelity Chief Executive Stephanie Ferris said the spinoff would help the company target a stronger investment credit rating while allowing Worldpay to invest more aggressively in its own growth.

Shares fell 5.2%, to $71.51, in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 13, 2023 07:52 ET (12:52 GMT)

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