Reuters – Fidelity National Selling Healthcare Benefits Biz

Payment processor Fidelity National Information Services Inc. said it would sell its healthcare benefit solutions business to private equity firm Lightyear Capital for $335 million in cash, Reuters reported Monday. FIS expects to incur an after-tax loss of about $55 million, or 19 cents per share, upon completion of the sale in the third quarter.

(Reuters) – Payment processor Fidelity National Information Services Inc said it would sell its healthcare benefit solutions business to private equity firm Lightyear Capital for $335 million in cash.

 

FIS expects to incur an after-tax loss of about $55 million, or 19 cents per share, upon completion of the sale in the third quarter

 

The company expects the sale to reduce adjusted earnings per share from continuing operations by about 2 cents in the second quarter.

 

Full-year earnings per share from continuing operations will fall by 7 cents, before any reinvestment of net proceeds, FIS said.

 

“The divestiture is consistent with our primary focus to serve financial institutions, as well as our strategy to maintain leadership positions in markets where we have meaningful scale,” FIS Chief Executive Frank Martire said in a statement.

 

The company said it would retain its state and federal government-sponsored electronic benefits transfer businesses and programs.

 

FIS’s shares closed at $33.28 on Friday on the New York Stock Exchange.