Financial technology firm FIS (NYSE:FIS) has announced that it will spin off its merchant solutions unit, undoing a multi-billion dollar purchase it made just four years ago, in a bid to enhance growth and returns for shareholders.
In a statement on Monday, the U.S.-based FIS said the tax-free carving-out of the division, which includes the payments processor Worldpay that it bought for $43 billion in 2019, is anticipated to be completed within the next twelve months. The transaction will improve both companies’ performance, strengthen client services and simplify operational management, FIS argued.