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 2024 it offers its solutions in two primary segments: Banking Solutions & 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]
 Advancing the way the world pays, banks and invests | |
| FIS | |
| Company type | Public |
| Industry | Financial Sector |
| Predecessor | Systematics, Inc |
| Founded | 1968 |
| Headquarters | , U.S. |
Area served | Worldwide |
Key people | Stephanie Ferris (CEO & President) |
| Products | Banking Technology, Payment Technology, Processing Services, Information Based services |
| Revenue |  US$13.88 billion (2021) |
| US$1.06 billion (2021) | |
| US$417 million (2021) | |
| Total assets |  US$82.93 billion (2021) |
| Total equity | US$47.35 billion (2021) |
Number of employees | 65,000+ (December 2021) |
| Website | www |
| Footnotes / references [1] | |
FIS was ranked second in the FinTech Forward 2016 rankings.[3] After acquiring Worldpay for $35 billion in Q3 of 2019, FIS became the largest processing and payments company in the world.[4]
History
editThe company was founded in Little Rock in 1968 as Systematics, which was later acquired by ALLTEL Information Services as its Financial Services division. Alltell then sold this division to title insurance giant Fidelity National Financial in 2003, who renamed it Fidelity Information Services (FIS).[5]
Operations
editFIS has a portfolio of products for the financial services sector, including both retail and investment banking.[6] They include "Profile"―a banking application based on the open source GT.M, a transaction processing database engine maintained by FIS.[7]
Mergers, acquisitions and divestments
editThroughout its history, FIS has made many acquisitions.[8] Its largest to date would have been estimated around US$70 billion, but which fell through in December 2020.[9]
- Alltel Information Services, $1.05 billion (2003)[8]
- WebTone Technologies (2003)[10][11]
- Sanchez Computer Associates, $175 million (2004)[12]
- Aurum Technology (2004)[13]
- BankWare (2004)[14]
- InterCept (2004)[15]
- Kordoba GmbH & Co, $163.2 million (2004)[8]
- Merger with Certegy Inc., $1.8 billion (2006)[8][16]
- eFunds Corporation (EFD)[citation needed]
- Metavante Corporation, $2.94 billion in stock (2009)[17]
- Compliance Coach, Inc, 2010[18]
- Capco, $292 million (2010)[19] In May 2017 FIS sold a 60% stake in Capco to CD&R funds for $477 million.[20]
- Pronet Solutions, $24 million (2012)
- TDWI (Toronto Dominion Wealth Institutional) – now re-branded as Platform Securities (2013)[21]
- mFoundry, $120 million (2013)[22]
- CMSI (2014)[23][24]
- Reliance Trust Company (2014)[25] $110 million
- Clear2Pay (2014)[26][27] $480 million
- SunGard (2015)[28] $9.1 billion
- Worldpay, Inc. (2019)[29] $43 billion
- Virtus Partners (2020)[30]
- Payrix (2022)[31]
- Bond Financial Technologies (2023)[32]
- Torstone Technology (2024)[33]
Divestments
editIn 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.[34] 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.[35] On February 1, 2024, the company announced it had competed the sale of a majority stake in its Worldpay Merchant Solutions business to GTCR in a transaction that valued the deal at US$18.5 billion, including US$1 billion contingent on returns realized by GTCR. FIS will maintain commercial agreements with Worldpay and will create a joint strategic go-to-market partnership between the two entities.[36]
Finances
editA 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.[37]
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$33 billion in November 2018.[38]
| Year | Revenue in mil. US$ |
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
editOn 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.[39] 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".[40]
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.[41]
References
edit- ^ "FIS, Inc. 2021 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 23, 2022.
- ^ "About Our Company - FIS".
- ^ "FinTech Forward 2016". American Banker. Archived from the original on August 19, 2019. Retrieved August 19, 2019.
- ^ Fuscaldo, Donna. "FIS Buys Worldpay For $35 Billion As Payment Consolidation Heats Up". Forbes. Retrieved May 20, 2020.
- ^ "Alltel Sells Financial Services Division for $1 Billion".
- ^ "Enterprise Financial Systems - FIS".
- ^ "Tuning and Optimizing the Red Hat Core Banking Pla" (PDF). www.redhat.com. 2007. Retrieved September 15, 2019.
- ^ a b c d "About Our Company - FIS".
- ^ "FIS, Global Payments Held Unsuccessful Talks to Merge". Wall Street Journal. December 20, 2020.
- ^ "FIS acquires WebTone Technologies | Startup Ranking". StartupRanking. Retrieved December 29, 2020.
- ^ "Fidelity National buys WebTone". www.bizjournals.com. Retrieved December 29, 2020.
- ^ "Fidelity National Financial acquires Sanchez". January 29, 2004.
- ^ "Fidelity National Financial to acquire Aurum Technology". February 9, 2004.
- ^ "Fidelity National Financial acquires Bankware and Pro-Soft". April 7, 2004.
- ^ "Fidelity to buy InterCept; postpones IPO". September 9, 2004.
- ^ "Certegy shareholders agree to Fidelity merger". January 27, 2006.
- ^ "Media Room".
- ^ "FIS to Acquire Compliance Coach, Inc". Retrieved July 5, 2018.
- ^ "Capco - Financial Services Business and Technology Consultants".
- ^ "FIS To Sell 60% Equity Interest In Capco; To Receive $477 Mln In Cash Proceeds". May 22, 2017.
- ^ "- FIS acquisition of Platform Securities completed".
- ^ "FIS acquires mobile banking guru mFoundry for $120 million". February 3, 2013.
- ^ "FIS acquires loan origination software vendor CMSI". Finextra Research. April 14, 2014. Retrieved December 29, 2020.
- ^ "FIS Acquires Loan Origination Company CMSI". American Banker. April 14, 2014. Retrieved December 29, 2020.
- ^ "FIS Completes Acquisition of Reliance Financial Corporation".[permanent dead link]
- ^ "Acquisition of Clear2Pay Bolsters FIS' Enterprise Payments Portfolio". Archived from the original on September 3, 2014. Retrieved September 3, 2014.
- ^ "FIS Completes Acquisition of Clear2Pay". Archived from the original on October 8, 2014. Retrieved October 8, 2014.
- ^ "FIS to Purchase Financial Software Maker SunGard for $9.1 Billion". August 13, 2015.
- ^ "FIS and Worldpay to Combine to Accelerate the Future of Finance and Commerce Globally". www.businesswire.com. March 18, 2019.
- ^ "FIS takes majority stake in alternatives fund administration provider Virtus". January 3, 2020.
- ^ "FIS Acquisition of Payrix Expands Its E-Commerce, Embedded Payments and Finance Experiences for SMB Merchants via Platforms".
- ^ "Report: FIS Acquires Bond Financial Technologies to Grow Embedded Finance". June 9, 2023.
- ^ "FIS acquires Torstone Technology".
- ^ Nishant, Niket; Sen, Anirban; Vinn, Milana (February 13, 2023). "FIS takes $17.6 billion hit in merchant unit to be spun off". Reuters. Retrieved February 13, 2023.
- ^ Nishant, Niket; Sen, Anirban (July 6, 2023). "Buyout firm GTCR picks up majority stake valuing FIS unit Worldpay at $18.5 billion". Reuters.
- ^ "FIS Completes Sale of Majority Stake of Worldpay to GTCR". Business Wire. February 1, 2024. Retrieved February 12, 2024.
- ^ "FIS Reports First Quarter 2020 Results". FIS. Retrieved May 20, 2020.
- ^ "Fidelity National Information Services Revenue 2006-2018 | FIS". www.macrotrends.net. Retrieved November 6, 2018.
- ^ "CertegyAVC.pdf" (PDF). Archived from the original (PDF) on August 8, 2019.
- ^ "Data breach generates class action lawsuit". Network World. August 21, 2007.
- ^ "Coordinated ATM Heist Nets Thieves $13M". Brian Krebs. August 26, 2011.
External links
edit- Official website
- Business data for Fidelity National Information Services, Inc.: