Bloomberg News

FIS Said to Seek Sale of Unit That Handles Food-Stamp Payments

September 26, 2013

Fidelity National Information Services Inc. (FIS:US) is selling its electronic benefits-transfer business, which helps the government make food-stamp payments, people with knowledge of the matter said.

The card payment processor is working with Bank of America Corp. (BAC:US) to sell the business, which may fetch more than $200 million, said one of the people, who asked not to be identified because the matter is private. First-round bids are due next week, the people said.

Fidelity National, which does business as FIS, is selling units to focus on financial institutions. Last year, the Jacksonville, Florida-based company sold its health-care benefit business to Lightyear Capital LLC for $335 million.

Brad Fennessy, a spokesman for FIS, declined to comment, as did John Yiannacopoulos, a spokesman for Bank of America.

The food-stamp unit serves clients in 25 states according to a press release last year. It generates about $25 million in annual earnings before interest, taxes, amortization and depreciation, said the people.

Fidelity National Financial Inc. (FNF:US) spun off Fidelity National Information Services in 2006.

To contact the reporter on this story: Matthew Monks in New York at mmonks1@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net


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Companies Mentioned

  • FIS
    (Fidelity National Information Services Inc)
    • $60.46 USD
    • 0.35
    • 0.58%
  • BAC
    (Bank of America Corp)
    • $17.1 USD
    • -0.08
    • -0.47%
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