JACKSONVILLE, Fla. – Fidelity National Information Services, Inc. (NYSE:FIS), a Fortune 500 company and a leading global provider of core processing, card issuer and transaction processing services, today announced that it has entered into a definitive agreement with Flexigroup Limited (ASX:FXL) under which Flexigroup will acquire the operating assets of Certegy Australia, Ltd. for approximately $30 million (U.S.) in cash and other consideration. Certegy Australia provides retail lending services to consumers. As part of the agreement, Flexigroup will manage on behalf of Certegy Australia the collection of customer accounts receivable outstanding on the sale closing date.
The transaction is expected to close in the fourth quarter of 2008. Based on the anticipated sales proceeds and collection of receivables, FIS expects to realize net cash of approximately $160 million, with the majority of the receivables expected to be collected within 18 months.
“Our decision to exit this business is consistent with our strategic review of non-core assets in order to better focus our resources and capital toward providing industry leading technology solutions to financial institutions,” stated Lee A. Kennedy, president and chief executive officer of FIS. “Similar to the previously announced sale of our gaming operation, this transaction should drive higher revenue growth, profitability and free cash flow over time.”
About Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (NYSE: FIS), a Fortune 500 company, is a leading provider of core processing for financial institutions; card issuer and transaction processing services; and outsourcing services to financial institutions and retailers. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top 10. FIS is a member of Standard and Poor's (S&P) 500(R) Index and has been ranked the number one overall financial technology provider in the world by American Banker and the research firm Financial Insights in the annual FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 13,000 financial institutions in more than 80 countries worldwide. For more information on Fidelity National Information Services, please visit www.fidelityinfoservices.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to changes in general economic, business and political conditions and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.