Fidelity National to Spin Off Merchant Business
February 13 2023 - 8:07AM
Dow Jones News
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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