Banking and payments processing conglomerate Fidelity National Information Services Inc (FIS.N) took a $17.6 billion write-down on its merchant business as it unveiled plans on Monday to spin it off, undoing a $43 billion acquisition that went sour.
FIS built its merchant business, which processes transactions for companies, on the back of its $43 billion purchase of WorldPay four years ago. New financial technology startups have since eroded its market share and challenged its profitability.
“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,” FIS Chairman Jeffrey Goldstein said in a statement.
FIS said in the statement it planned to spin of Worldpay in the next 12 months into a separate company that will be owned by its shareholders on a tax-free basis, confirming a Reuters report published on Friday.
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