Company:FIS

From HandWiki
Short description: American information technology company
FIS
TypePublic
IndustryFinancial Sector
Founded1968; 56 years ago (1968)
Headquarters347 Riverside Avenue Jacksonville, Florida 32202
Area served
Worldwide
Key people
Stephanie Ferris
(CEO & President)
ProductsBanking Technology, Payment Technology, Processing Services, Information Based services
RevenueIncrease US$13.88 billion (2021)[1]
Increase US$1.06 billion (2021)[1]
Increase US$417 million (2021)[1]
Total assetsDecrease US$82.93 billion (2021)[1]
Total equityDecrease US$47.35 billion (2021)[1]
Number of employees
65,000+[1] (December 2021)
Websitewww.fisglobal.com

Fidelity National Information Services, Inc. (FIS) is an American multinational corporation which offers a wide range of financial products and services. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions. Annually, FIS facilitates the movement of roughly $9 trillion through the processing of approximately 75 billion transactions in service to more than 20,000 clients around the globe.[2]

FIS was ranked second in the FinTech Forward 2016 rankings.[3] After finalizing FIS' most recent deal to acquire Worldpay for $35 billion in Q3 of 2019, FIS became the largest processing and payments company in the world.[4]

Operations

FIS has a portfolio of products for the financial services sector, including both retail and investment banking.[5]

They include "Profile" ― a banking application based on the open source GT.M, a transaction processing database engine maintained by FIS.[6]

Mergers, acquisitions and divestments

Throughout its history, FIS has made many acquisitions.[7] Its largest to date would have been estimated around US$70 billion, but which fell through in December 2020.[8]

  • Alltel Information Services, $1.05 billion (2003)[7]
  • WebTone Technologies (2003)[9][10]
  • Sanchez Computer Associates, $175 million (2004)[11]
  • Aurum Technology (2004)[12]
  • BankWare (2004)[13]
  • InterCept (2004)[14]
  • Kordoba GmbH & Co, $163.2 million (2004)[7]
  • Merger with Certegy Inc., $1.8 billion (2006)[7][15]
  • eFunds Corporation (EFD)[citation needed]
  • Metavante Corporation, $2.94 billion in stock (2009)[16]
  • Compliance Coach, Inc, 2010[17]
  • Capco, $292 million (2010)[18] In May 2017 FIS sold a 60% stake in Capco to CD&R funds for $477 million.[19]
  • TDWI (Toronto Dominion Wealth Institutional) - now re-branded as Platform Securities (2013)[20]
  • mFoundry, $120 million (2013)[21]
  • CMSI (2014)[22][23]
  • Reliance Trust Company (2014)[24] $110 million
  • Clear2Pay (2014)[25][26] $480 million
  • SunGard Data Systems (2015)[27] $9.1 billion
  • Worldpay, Inc. (2019)[28] $43 billion
  • Payrix (2022)[29]

Divestments

In February 2023, in the wake of pressure from activist investors, the company announced it would spin off its merchant business that consisted of Worldpay in the next 12 months.[30] In July 2023, FIS agreed to sell a 55 percent stake in WorldPay to private equity firm GTCR for $11.7 billion, valuing WorldPay at $18.5 billion.[31]

Finances

A 50% year-over-year increase in quarterly revenue was reported in FIS' Q1 2020 earnings report, climbing from $2.07 billion to $3.01 billion, while adjusted net earnings more than doubled (+112%) from $378 million to $802 million. According to FIS Q1 2020 earnings report, a majority of these substantial increases can be attributed to the historically massive $35 billion merger/acquisition deal with Worldpay, Inc. which closed in Q3 2019.[32]

For the fiscal year 2017, FIS reported earnings of US$1.319 billion, with an annual revenue of US$9.123 billion, a decrease of 1.3% over the previous fiscal cycle. FIS shares traded at over $106 per share, and its market capitalization was valued at over US$33 billion in November 2018.[33]

Year Revenue
in mil. US$ 		Net income
in mil. US$ 		Total Assets
in mil. US$ 		Price per Share
in US$ 		Employees
2005 2,688 197 4,189 15.77
2006 2,417 259 7,631 18.08
2007 2,893 561 9,795 22.46
2008 3,360 215 7,500 17.28
2009 3,711 106 13,998 18.23
2010 5,146 405 14,176 23.27
2011 5,626 470 13,873 25.85
2012 5,796 461 13,550 29.22
2013 6,063 493 13,960 40.54 38,000
2014 6,413 679 14,521 52.41 40,000
2015 6,596 632 26,200 62.80 55,000
2016 9,241 568 26,031 69.40 55,000
2017 9,123 1,319 24,517 86.11 53,000
2018 8,423 846 23,770 102.55 47,000
2019 10,333 298 83,806 139.09 55,000
2020 12,552 158 83,842 141.46 62,000
2021 13,877 417 82,931 109.15 65,000

Controversies

On July 3, 2007, Certegy Check Services, part of FIS, announced that a worker at one of its subsidiaries stole 2.3 million consumer records containing credit card, bank account, and other personal information.[34] This estimate was later increased to 8.5 million consumer records. The next month, a law firm filed a class-action lawsuit against CCS and parent company FIS based on the privacy breach; the firm claims that, since CCS provides check-verification services to many major U.S. stores, "consumers do not choose to use the services of these companies but rather are forced to do so".[35]

In August 2011, Florida based eFunds Prepaid Solutions, part of FIS, was the victim of a sophisticated cyberattack that saw hackers steal $13 million from ATMs using 22 stolen prepaid cards belonging to a single client of FIS.[36]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 "FIS, Inc. 2021 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. 23 February 2022. https://www.sec.gov/ix?doc=/Archives/edgar/data/1136893/000113689322000038/fis-20211231.htm. 
  2. ↑ "About Our Company - FIS". http://www.fisglobal.com/About-Us/About-Our-Company. 
  3. ↑ "FinTech Forward 2016" (in en). https://www.americanbanker.com/fintech-forward-2016. 
  4. ↑ Fuscaldo, Donna. "FIS Buys Worldpay For $35 Billion As Payment Consolidation Heats Up" (in en). https://www.forbes.com/sites/donnafuscaldo/2019/03/18/fis-buys-worldpay-for-35-billion-as-payment-consolidation-ensues/. 
  5. ↑ "Enterprise Financial Systems - FIS". http://www.fisglobal.com/products. 
  6. ↑ "Tuning and Optimizing the Red Hat Core Banking Pla". 2007. https://static.redhat.com/legacy/f/pdf/rhel/Profile_Benchmark_Results_11-17-2007.pdf. 
  7. ↑ 7.0 7.1 7.2 7.3 "About Our Company - FIS". http://www.fisglobal.com/aboutfis-ourcompany. 
  8. ↑ "FIS, Global Payments Held Unsuccessful Talks to Merge". Wall Street Journal. 20 December 2020. https://www.wsj.com/articles/fis-global-payments-held-unsuccessful-talks-to-merge-11608487357. 
  9. ↑ "FIS acquires WebTone Technologies | Startup Ranking" (in en-US). https://www.startupranking.com/acquisition/fis-acquires-webtone-technologies-11078. 
  10. ↑ "Fidelity National buys WebTone". https://www.bizjournals.com/atlanta/stories/2003/07/21/daily47.html. 
  11. ↑ "Fidelity National Financial acquires Sanchez". 29 January 2004. https://www.finextra.com/newsarticle/11067/fidelity-national-financial-acquires-sanchez. 
  12. ↑ "Fidelity National Financial to acquire Aurum Technology". 9 February 2004. https://www.finextra.com/newsarticle/11143/fidelity-national-financial-to-acquire-aurum-technology. 
  13. ↑ "Fidelity National Financial acquires Bankware and Pro-Soft". 7 April 2004. https://www.finextra.com/newsarticle/11593/fidelity-national-financial-acquires-bankware-and-pro-soft. 
  14. ↑ "Fidelity to buy InterCept; postpones IPO". 9 September 2004. https://www.finextra.com/newsarticle/12457/fidelity-to-buy-intercept-postpones-ipo. 
  15. ↑ "Certegy shareholders agree to Fidelity merger". 27 January 2006. https://www.finextra.com/pressarticle/7780/certegy-shareholders-agree-to-fidelity-merger. 
  16. ↑ "Media Room". http://www.fisglobal.com/NEWSRELEASE-2009-10-01-123. 
  17. ↑ "FIS to Acquire Compliance Coach, Inc." (in en). https://www.businesswire.com/news/home/20100614005915/en/FIS-Acquire-Compliance-Coach. 
  18. ↑ "Capco - Financial Services Business and Technology Consultants". http://www.capco.com. 
  19. ↑ "FIS To Sell 60% Equity Interest In Capco; To Receive $477 Mln In Cash Proceeds". 22 May 2017. http://www.nasdaq.com/article/fis-to-sell-60-equity-interest-in-capco-to-receive-477-mln-in-cash-proceeds-20170523-00520. 
  20. ↑ "- FIS acquisition of Platform Securities completed". http://www.platformsecurities.com/FISacquisition.aspx. 
  21. ↑ "FIS acquires mobile banking guru mFoundry for $120 million". https://www.engadget.com/2013/02/03/fis-acquires-mobile-banking-guru-mfoundry-for-120-million/. 
  22. ↑ "FIS acquires loan origination software vendor CMSI" (in en). 2014-04-14. https://www.finextra.com/pressarticle/54867/fis-acquires-loan-origination-software-vendor-cmsi. 
  23. ↑ "FIS Acquires Loan Origination Company CMSI" (in en). 2014-04-14. https://www.americanbanker.com/news/fis-acquires-loan-origination-company-cmsi. 
  24. ↑ "FIS Completes Acquisition of Reliance Financial Corporation". http://www.fisglobal.com/C028450. [yes|permanent dead link|dead link}}]
  25. ↑ "Acquisition of Clear2Pay Bolsters FIS' Enterprise Payments Portfolio". http://www.fisglobal.com/C029864. 
  26. ↑ "FIS Completes Acquisition of Clear2Pay". http://www.fisglobal.com/C031126. 
  27. ↑ "FIS to Acquire SunGard". 17 January 2019. https://www.thestreet.com/technology/fiserv-first-data-merger-fintech-consolidation-14836844. 
  28. ↑ "FIS and Worldpay to Combine to Accelerate the Future of Finance and Commerce Globally". March 18, 2019. https://www.businesswire.com/news/home/20190318005222/en/FIS-Worldpay-Combine-Accelerate-Future-Finance-Commerce. 
  29. ↑ "FIS Acquisition of Payrix Expands Its E-Commerce, Embedded Payments and Finance Experiences for SMB Merchants via Platforms". https://www.investor.fisglobal.com/news-releases/news-release-details/fis-acquisition-payrix-expands-its-e-commerce-embedded-payments. 
  30. ↑ Nishant, Niket; Sen, Anirban; Vinn, Milana (2023-02-13). "FIS takes $17.6 billion hit in merchant unit to be spun off" (in en). Reuters. https://www.reuters.com/markets/deals/fidelity-national-spin-off-merchant-payments-segment-2023-02-13/. 
  31. ↑ Nishant, Niket; Sen, Anirban (2023-07-06). "Buyout firm GTCR picks up majority stake valuing FIS unit Worldpay at $18.5 billion". https://www.reuters.com/markets/deals/fis-sell-stake-merchant-business-gtcr-185-bln-deal-2023-07-06/. 
  32. ↑ "FIS Reports First Quarter 2020 Results" (in en). https://www.investor.fisglobal.com/news-releases/news-release-details/fis-reports-first-quarter-2020-results. 
  33. ↑ "Fidelity National Information Services Revenue 2006-2018 | FIS". https://www.macrotrends.net/stocks/charts/FIS/fidelity-national-information-services/revenue. 
  34. ↑ "CertegyAVC.pdf". https://myfloridalegal.com/webfiles.nsf/WF/MRAY-84KKQN/$file/CertegyAVC.pdf. 
  35. ↑ "Data breach generates class action lawsuit". 2007-08-21. http://www.networkworld.com/community/node/18598. 
  36. ↑ "Coordinated ATM Heist Nets Thieves $13M". 2011-08-26. http://krebsonsecurity.com/2011/08/coordinated-atm-heist-nets-thieves-13m/. 

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