Fidelity National Information Services is to sell its Australian retail lending unit Certegy Australia to Flexigroup for $30 million in cash and other considerations.
Lee Kennedy, Fidelity president and CEO, says the decision to exit the business "is consistent with our strategic review of non-core assets".
Under the agreement, Flexigroup will manage the collection of customer accounts receivable outstanding on the sale closing date, which is expected to net Fidelity a further $160 million cash over the next 18 months..
States Kennedy: "Similar to the previously announced sale of our gaming operation, this transaction should drive higher revenue growth, profitability and free cash flow over time."
The transaction is expected to close in the fourth quarter of 2008.