Summary
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% 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.
Key Highlights
- 1FIS is selling a 55% stake in its Worldpay Merchant Solutions business to GTCR, retaining a 45% interest.
- 2The Worldpay divestiture is expected to close by the first quarter of 2024.
- 3Post-closing, FIS will account for its remaining Worldpay interest as an equity method investment.
- 4Worldpay Merchant Solutions' operating results are now presented as discontinued operations starting in Q3 2023.
- 5FIS has recast its supplemental financial data for 2023 and 2022 to align with the discontinued operations presentation.
- 6Key supplemental non-GAAP financial measures like adjusted EBITDA and adjusted net earnings have been provided on a recast basis.
- 7This 8-K filing is furnished and not deemed 'filed' for Section 18 purposes.