FIS (company)

Last updated
FIS
Company type Public
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
RevenueIncrease2.svg US$13.88 billion (2021) [1]
Increase2.svgUS$1.06 billion (2021) [1]
Increase2.svgUS$417 million (2021) [1]
Total assets Decrease2.svgUS$82.93 billion (2021) [1]
Total equity Decrease2.svgUS$47.35 billion (2021) [1]
Number of employees
65,000+ [1]  (December 2021)
Website www.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 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]

Contents

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]

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. [33] 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. [34] 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 $18.5 billion USD, including $1 billion USD 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. [35]

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. [36]

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. [37]

YearRevenue
in mil. US$		Net income
in mil. US$		Total Assets
in mil. US$		Price per Share
in US$		Employees
20052,6881974,18915.77
20062,4172597,63118.08
20072,8935619,79522.46
20083,3602157,50017.28
20093,71110613,99818.23
20105,14640514,17623.27
20115,62647013,87325.85
20125,79646113,55029.22
20136,06349313,96040.5438,000
20146,41367914,52152.4140,000
20156,59663226,20062.8055,000
20169,24156826,03169.4055,000
20179,1231,31924,51786.1153,000
20188,42384623,770102.5547,000
201910,33329883,806139.0955,000
202012,55215883,842141.4662,000
202113,87741782,931109.1565,000

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. [38] 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". [39]

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. [40]

Related Research Articles

<span class="mw-page-title-main">ADT Inc.</span> American security systems firm

ADT Inc., formerly The ADT Corporation, is an American security company that provides residential and small business electronic security, fire protection, and other related alarm monitoring services throughout the United States. The corporate head office is located in Boca Raton, Florida. In February 2016, the company was acquired by Apollo Global Management for $6.9 billion in a leveraged buyout. In January 2018, the company went public on the New York Stock Exchange.

SunGard was an American multinational company based in Wayne, Pennsylvania, which provided software and services to education, financial services, and public sector organizations. It was formed in 1983, as a spin-off of the computer services division of Sun Oil Company. The name of the company originally was an acronym which stood for Sun Guaranteed Access to Recovered Data, a reference to the disaster recovery business it helped pioneer. SunGard was ranked at 480th in the U.S. Fortune 500 list in the year 2012.

<span class="mw-page-title-main">Fiserv</span> Provider of financial services technology to banks

Fiserv, Inc. is an American multinational company headquartered in Milwaukee, Wisconsin, that provides financial technology and services to clients across the financial services sector, including banks, thrifts, credit unions, securities broker dealers, mortgage, insurance, leasing and finance companies, and retailers.

Metavante Technologies, Inc., through its subsidiary, Metavante Corporation, provided financial technology services, software and financial services regulatory advice and consulting to its customers, consisting primarily of small to large sized financial institutions. The $1.5 billion organization was headquartered in Milwaukee, Wisconsin, and employed over 5,600 employees in 35 U.S. cities. On October 1, 2009, Metavante was acquired by Fidelity National Information Services.

<span class="mw-page-title-main">Clayton, Dubilier & Rice</span> American private equity company

Clayton, Dubilier & Rice (CD&R) is an American private equity company. It is one of the oldest private equity investment firms in the world. Founded in 1978, CD&R has managed the investment of more than $30 billion in approximately 90 businesses, representing a broad range of industries with an aggregate transaction value in excess of $140 billion. Approximately half of CD&R's investments have involved corporate divestitures.

<span class="mw-page-title-main">TSYS</span> Subsidiary of Global Payments

Total System Services, Inc., is an American financial technology company headquartered in Columbus, Georgia. In 2019, TSYS was merged into Global Payments Inc. TSYS is the largest third-party payment processor for issuing banks in North America, with a 40% market share, and one of the largest in Europe. It provides payment processing services, merchant services and related payment services. It also provides reloadable prepaid debit cards and payroll cards, and demand deposit accounts to the underbanked.

BankServ was a legacy financial services company headquartered in Enterprise, Nevada that developed electronic banking software and operated outsourced data processing centers used by banks and other businesses to move money electronically. BankServ was founded in 1996 and did business with over 400 banks in more than 50 countries, primarily supplying banks with the behind-the-scenes programs used for remote deposit, internet bill payment, mobile payments, wire transfer payments and sending messages over the international SWIFT network.

Rob Heyvaert is the managing partner of Motive Partners, an investment firm focused on technology companies in the financial services industry based in New York, US and London, UK and former CEO & founder of the Capital Markets Company (Capco).

<span class="mw-page-title-main">Finastra</span> Software companies of the United Kingdom

Finastra is a financial software company headquartered in London, England. The company offers a portfolio of products and solutions to the retail banking, transaction banking, lending, and treasury capital markets. Finastra was formed in 2017 by the combination of London-based Misys, a provider of financial operations software, and global payments and lending technology provider D+H. At the time of its formation, Finastra was considered the third-largest financial services company in the world.

<span class="mw-page-title-main">Capco</span> Business consultancy company

Capco is a business and technology management consultancy owned by Wipro, operating primarily in the financial services and energy sectors. Capco's operational headquarters are in London, England, with 32 offices across the Americas, Europe, and Asia Pacific. The company offers services primarily in banking, capital markets, wealth and investment management, insurance, finance, risk & compliance. It also has an energy consulting practice in the US.

Worldpay Group plc was a payment processing company. It was formerly listed on the London Stock Exchange until 16 January 2018 when it was acquired by Vantiv. The combined company then took the name Worldpay, Inc. Worldpay, Inc. was acquired by FIS in July 2019 for $43 billion.

<span class="mw-page-title-main">Vista Equity Partners</span> American investment firm

Vista Equity Partners is an American private equity firm that invests in software, data, and technology-enabled businesses. With over $100 billion in AUM, it is one of the largest private equity firms in the world. Vista Equity Partners has invested in hundreds of technology companies, including Citrix, SentinelOne, and Marketo, and has achieved many accolades in the space, most recently being named as 2023's Global Technology Private Equity Firm of the Year by Private Equity International.

Worldpay, Inc. is an American payment processing company and technology provider. In February 2024, it was separated from Fidelity National Information Services (FIS) to become an independent company once again. It is majority owned by private equity firm GTCR. It is headquartered in the greater Cincinnati, Ohio area. Worldpay, Inc., is the largest U.S. merchant acquirer ranked by general-purpose transaction volume.

Black Knight, Inc. is an American corporation that provides integrated technology, services, data and analytics to the mortgage lending, servicing and real estate industries, as well as the capital and secondary markets. Black Knight is also known for its monthly benchmark data reports: Mortgage Monitor, a month-end analysis of mortgage performance statistics derived from Black Knight's loan-level database representing the majority of the national mortgage market; and Originations Market Monitor, the industry's earliest and most comprehensive view of single-family residential mortgage originations based on daily rate lock data from Black Knight's Optimal Blue PPE. In 2023, Intercontinental Exchange acquired the company for $11.7 billion.

<span class="mw-page-title-main">Greenhill & Co.</span> American investment bank

Greenhill & Co., Inc. is an American investment banking advisory firm founded in 1996 by Robert F. Greenhill. The firm provides advice on significant mergers, acquisitions, restructurings, financings, and capital raisings to leading corporations, partnerships, institutions and governments across a number of industries. Since its inception, Greenhill has advised on transactions valued at close to $3 trillion.

<span class="mw-page-title-main">Opayo</span> Payment company

Opayo, formerly Sage Pay, is a payments processing service owned by Elavon. It operates in the UK and Ireland. The company provides online payments processing as well as products for face-to-face and telephone payments. It was known by the name Sage Pay while under the ownership of The Sage Group plc between 2006 and 2020, when the payments company had also expanded to Germany, Spain, South Africa and the United States.

Global Payments Inc. is an American multinational financial technology company that provides payment technology and services to merchants, issuers and consumers. In June 2021, the company was named to the Fortune 500. The company processes payments made through credit cards, debit cards, and digital and contactless payments.

<span class="mw-page-title-main">SourceHOV</span> American company

SourceHOV LLC is an American technology-enabled business services company headquartered in Dallas, Texas. It provides enterprise information management and transaction processing services in the BPO industry. In February 2017, Novitex Enterprise Solutions, SourceHOV and Quinpario Acquisition Corp. 2 announced that they will merge to create Exela Technologies, a solutions provider for financial technology and business services.

Network International Holdings provides technology-enabled payments as a service to merchants and financial institutions in the Middle East and Africa. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">Paya, Inc.</span> American company

Paya Holdings, Inc. is an American payment processor service that operates in North America and is headquartered in Atlanta, Georgia. As well as its headquarters, it has offices in Florida, Ohio and Virginia.

References

  1. 1 2 3 4 5 6 "FIS, Inc. 2021 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. 23 February 2022.
  2. ↑ "About Our Company - FIS".
  3. ↑ "FinTech Forward 2016". American Banker. Archived from the original on 2019-08-19. Retrieved 2019-08-19.
  4. ↑ Fuscaldo, Donna. "FIS Buys Worldpay For $35 Billion As Payment Consolidation Heats Up". Forbes. Retrieved 2020-05-20.
  5. ↑ "Enterprise Financial Systems - FIS".
  6. ↑ "Tuning and Optimizing the Red Hat Core Banking Pla" (PDF). www.redhat.com. 2007. Retrieved 2019-09-15.
  7. 1 2 3 4 "About Our Company - FIS".
  8. ↑ "FIS, Global Payments Held Unsuccessful Talks to Merge". Wall Street Journal. 20 December 2020.
  9. ↑ "FIS acquires WebTone Technologies | Startup Ranking". StartupRanking. Retrieved 2020-12-29.
  10. ↑ "Fidelity National buys WebTone". www.bizjournals.com. Retrieved 2020-12-29.
  11. ↑ "Fidelity National Financial acquires Sanchez". 29 January 2004.
  12. ↑ "Fidelity National Financial to acquire Aurum Technology". 9 February 2004.
  13. ↑ "Fidelity National Financial acquires Bankware and Pro-Soft". 7 April 2004.
  14. ↑ "Fidelity to buy InterCept; postpones IPO". 9 September 2004.
  15. ↑ "Certegy shareholders agree to Fidelity merger". 27 January 2006.
  16. ↑ "Media Room".
  17. ↑ "FIS to Acquire Compliance Coach, Inc" . Retrieved 2018-07-05.
  18. ↑ "Capco - Financial Services Business and Technology Consultants".
  19. ↑ "FIS To Sell 60% Equity Interest In Capco; To Receive $477 Mln In Cash Proceeds". 22 May 2017.
  20. ↑ "- FIS acquisition of Platform Securities completed".
  21. ↑ "FIS acquires mobile banking guru mFoundry for $120 million". 3 February 2013.
  22. ↑ "FIS acquires loan origination software vendor CMSI". Finextra Research. 2014-04-14. Retrieved 2020-12-29.
  23. ↑ "FIS Acquires Loan Origination Company CMSI". American Banker. 2014-04-14. Retrieved 2020-12-29.
  24. ↑ "FIS Completes Acquisition of Reliance Financial Corporation".[ permanent dead link ]
  25. ↑ "Acquisition of Clear2Pay Bolsters FIS' Enterprise Payments Portfolio". Archived from the original on 2014-09-03. Retrieved 2014-09-03.
  26. ↑ "FIS Completes Acquisition of Clear2Pay". Archived from the original on 2014-10-08. Retrieved 2014-10-08.
  27. ↑ "FIS to Purchase Financial Software Maker SunGard for $9.1 Billion". 13 August 2015.
  28. ↑ "FIS and Worldpay to Combine to Accelerate the Future of Finance and Commerce Globally". www.businesswire.com. March 18, 2019.
  29. ↑ "FIS takes majority stake in alternatives fund administration provider Virtus". January 3, 2020.
  30. ↑ "FIS Acquisition of Payrix Expands Its E-Commerce, Embedded Payments and Finance Experiences for SMB Merchants via Platforms".
  31. ↑ "Report: FIS Acquires Bond Financial Technologies to Grow Embedded Finance". 9 June 2023.
  32. ↑ "FIS acquires Torstone Technology".
  33. ↑ Nishant, Niket; Sen, Anirban; Vinn, Milana (2023-02-13). "FIS takes $17.6 billion hit in merchant unit to be spun off". Reuters. Retrieved 2023-02-13.
  34. ↑ Nishant, Niket; Sen, Anirban (2023-07-06). "Buyout firm GTCR picks up majority stake valuing FIS unit Worldpay at $18.5 billion". Reuters.
  35. ↑ "FIS Completes Sale of Majority Stake of Worldpay to GTCR". Business Wire. 2024-02-01. Retrieved 2024-02-12.
  36. ↑ "FIS Reports First Quarter 2020 Results". FIS. Retrieved 2020-05-20.
  37. ↑ "Fidelity National Information Services Revenue 2006-2018 | FIS". www.macrotrends.net. Retrieved 2018-11-06.
  38. ↑ "CertegyAVC.pdf" (PDF).
  39. ↑ "Data breach generates class action lawsuit". Network World . 2007-08-21.
  40. ↑ "Coordinated ATM Heist Nets Thieves $13M". Brian Krebs . 2011-08-26.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.