Fidelity National Financial has filed for a $500 million IPO and subsequent seperation of its non-insurance operations into a new IT entity, Fidelity National Information Services (FIS).
FNF has rapidly grown its information services business over the past year through an aggressive acquisition strategy that has seen it swallow up Sanchez, Alltel Information Services, Aurum, Bancware and Pro-Soft.
FNF chairman and CEO William Foley says: "The IPO and subsequent spin-off of FIS will allow us to position these businesses for the future and provide a separate, publicly traded currency that can be used in its business, including helping to finance future acquisitions. FNF, on the other hand, will focus on its leading market position in the title insurance industry, as well as growing its other specialty insurance businesses."
FIS intends to use approximately $250 million of net IPO proceeds to fund a dividend payment to FNF, which will be declared prior to the completion of the offering and used to pay down debt.
FIS will consist of three primary segments: Financial Institution Software and Services (FISS), Lender Outsourcing Solutions (LOS) and Information Products and Services (IPS). FISS, the largest segment, will consist of FNF's financial institution processing, mortgage processing and outsourcing businesses. LOS will consist primarily of FNF's loan facilitation and default management services. IPS will deal in real estate related services.