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Fidelity National Information Services, Inc. Annual Report, Year Ended Dec 31, 2005

Filing Date
Filed March 16, 2006
Period End
December 31, 2005
Security
FIS
In the record · 2016–202610-K1110-Q338-K168

FIS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 168 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’17Jul ’17
  2. Deal closed8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Jun ’21Jun ’21
  4. Material agreement8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 10-K filed March 16, 2006. Cited figures are marked; the original filing is the authoritative source.

Fidelity National Information Services, Inc. (FIS) completed a significant business combination on February 1, 2006, merging Certegy Inc. with Fidelity National Information Services, Inc. (Former FIS).

This strategic move positions FIS as a major player in processing services for U.S. financial institutions, boasting market leadership in core processing, card issuing, check risk management, mortgage processing, and lending services. The combined entity benefits from a diversified product mix, expanded international reach, and significant scale. Investors should note that Fidelity National Financial, Inc. (FNF) remains a majority stockholder, holding approximately 50.7%a of the outstanding common stock, which grants them considerable control over corporate decisions.

The company has a substantial debt load, with approximately $3.1 billionb in total debt following the business combination, which could impact financial flexibility. Financially, Certegy reported a 7.5% increase in revenues to $1.1 billion in 2005, with operating income growing by 9.8% to $185.0 million. Diluted EPS from continuing operations also saw an 8.5% increase to $1.66.

The company is investing significantly in technology upgrades, particularly for its core banking and mortgage processing software, with substantial expenditures planned in 2006. While the merger presents significant opportunities for cross-selling and cost synergies, investors should be mindful of the risks associated with integration, potential conflicts of interest due to FNF's controlling stake, and the company's leverage.

02—Key points

Key Highlights

  1. Completed a major business combination merging Certegy Inc. and Former FIS on February 1, 2006, creating a leading provider of financial processing services.
  2. FNF holds a majority stake (50.7%) in FIS, granting significant control over the company's strategic decisions.
  3. The combined entity offers a broad range of services, including core processing, card issuing, check risk management, mortgage processing, and lending services.
  4. Certegy's 2005 revenues grew 7.5% to $1.1 billion, with operating income up 9.8% to $185.0 million, and diluted EPS from continuing operations increased 8.5% to $1.66.
  5. The company carries a substantial debt load of approximately $3.1 billion post-merger, impacting financial flexibility.
  6. Significant investment in technology upgrades for core banking and mortgage processing software is planned for 2006.
  7. The company faces risks related to integration challenges, potential conflicts of interest with controlling stockholder FNF, and leverage.

03—Questions

Frequently Asked Questions

  1. What was the primary event detailed in this 10-K filing?

    The primary event was the completion of a business combination on February 1, 2006, where Certegy Inc. merged with Fidelity National Information Services, Inc. (Former FIS), with Certegy being the legal acquirer but Former FIS being the accounting acquirer due to FNF's majority ownership.

  2. Who is the controlling shareholder of the newly combined company?

    Fidelity National Financial, Inc. (FNF) is the controlling shareholder, owning approximately 50.7% of the outstanding common stock immediately after the merger.

  3. What are the key business segments of the combined entity?

    Following the merger, the company operates under two new reportable segments: Transaction Processing Services (TPS) and Lender Processing Services (LPS).

  4. What is the company's financial performance as of the filing date?

    For the year ended December 31, 2005, Certegy (which represents the pre-merger financial performance) reported revenues of $1.1 billion, operating income of $185.0 million, and diluted EPS from continuing operations of $1.66. The merger itself involved significant transaction costs.

  5. What are the major financial risks or considerations mentioned?

    The company has a significant debt burden of approximately $3.1 billion post-merger. Risks also include potential conflicts of interest with the controlling shareholder (FNF), challenges in integrating the two businesses, and the need for substantial investment in technology upgrades.

04—Continue

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