01—Abstract
Summary
Summary of the 8-K filed November 7, 2023. Cited figures are marked; the original filing is the authoritative source.
Fidelity National Information Services (FIS) has filed an 8-K report on November 7, 2023, announcing its financial results for the third quarter and first nine months of 2023.
A significant strategic shift is underway with the planned sale of a 55%a equity interest in its Worldpay Merchant Solutions business to GTCR, LLC. This transaction, expected to close by Q1 2024, will result in Worldpay being accounted for as an equity method investment post-closing, with its operating results already presented as discontinued operations from Q3 2023 onwards. The company has also recast its supplemental financial information for 2023 and 2022 to reflect this new presentation basis.
This includes adjusted EBITDA, adjusted net earnings, and adjusted net earnings per share. Investors should note that this 8-K filing is furnished and not deemed 'filed' under Section 18 of the Exchange Act, meaning it does not carry the same liabilities as a typical filing.
02—Key points
Key Highlights
- FIS is selling a 55% stake in its Worldpay Merchant Solutions business to GTCR, retaining a 45% interest.
- The Worldpay divestiture is expected to close by the first quarter of 2024.
- Post-closing, FIS will account for its remaining Worldpay interest as an equity method investment.
- Worldpay Merchant Solutions' operating results are now presented as discontinued operations starting in Q3 2023.
- FIS has recast its supplemental financial data for 2023 and 2022 to align with the discontinued operations presentation.
- Key supplemental non-GAAP financial measures like adjusted EBITDA and adjusted net earnings have been provided on a recast basis.
- This 8-K filing is furnished and not deemed 'filed' for Section 18 purposes.
03—Questions
Frequently Asked Questions
What is the main strategic development announced by FIS?
FIS has entered into a definitive agreement to sell a 55% equity interest in its Worldpay Merchant Solutions business to GTCR, LLC. FIS will retain a 45% stake in a new joint venture.
How will the Worldpay transaction impact FIS's financial reporting?
Following the closing of the transaction, FIS will account for its remaining 45% interest in Worldpay as an equity method investment. The operating results of Worldpay Merchant Solutions are already being presented as discontinued operations from the third quarter of 2023 onwards.
When is the Worldpay sale expected to be completed?
The transaction is anticipated to close by the first quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Does this 8-K filing change previously reported financial statements?
No, this Current Report on Form 8-K does not revise the Company’s previously reported consolidated financial statements for any period. It provides recast supplemental information and reflects a new basis of presentation for discontinued operations.
04—Continue