FIS takes US$17.6bil hit to merchant unit, plans to spin it off

FIS said it planned to spin off Worldpay in the next 12 months into a separate company that will be owned by its shareholders on a tax-free basis. — Reuters

NEW YORK: Fidelity National Information Services Inc (FIS) took a US$17.6bil (RM76.7bil) write-down on its merchant business as it announced plans to spin it off, undoing a US$43bil (RM187.3bil) acquisition that went sour.

FIS built its merchant business, which processes transactions for companies, on the back of its US$43bil (RM187.3bil) purchase of Worldpay four years ago. New financial technology startups have since eroded its market share and challenged its profitability.