Bulletin: Fidelity National Information Services Inc.'s Announced Sale Of Stake In Its Worldpay Business Will Reduce Its Leverage

NEW YORK (S&P Global Ratings) July 6, 2023--S&P Global Ratings today said Fidelity National Information Services Inc.'s (FIS; BBB/Stable/A-2) announcement that it will sell a 55% stake in its Worldpay merchant business to GTCR will reduce the company's initial leverage to the mid-2x area and lead to solid free cash flow. FIS expects to receive net proceeds of about $11.7 billion from the sale, which it intends to complete by the first quarter of 2024. The company arrived at this more attractive outcome after weeks of negotiations following its initial spin-off announcement in February. Our ratings on FIS are unchanged. FIS ended the first quarter of 2023 with total debt of about $20 billion and S&P Global Ratings-adjusted leverage of

...July 6, 2023 NEW YORK (S&P Global Ratings) July 6, 2023--S&P Global Ratings today said Fidelity National Information Services Inc.'s (FIS; ###/Stable/A-2) announcement that it will sell a 55% stake in its Worldpay merchant business to GTCR will reduce the company's initial leverage to the mid-2x area and lead to solid free cash flow. FIS expects to receive net proceeds of about $11.7 billion from the sale, which it intends to complete by the first quarter of 2024. The company arrived at this more attractive outcome after weeks of negotiations following its initial spin-off announcement in February. Our ratings on FIS are unchanged. FIS ended the first quarter of 2023 with total debt of about $20 billion and S&P Global Ratings-adjusted leverage of 3.2x, relatively unchanged from the end of 2022. Its EBITDA margins contracted to the low-40% from the mid-40% area a year ago, primarily due to rising costs, a weak performance in its merchant business, and a sales mix shift toward low-margin...

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