FIS plans for Worldpay separation to be completed within next 12 months

FIS announced plans to pursue a tax-free spin-off of its Merchant Solutions business "to strengthen its strategic and operational focus, capitalize on growth opportunities and unlock shareholder value." Through this transaction, FIS shareholders will receive a pro rata distribution of shares of Worldpay stock in a transaction that is expected to be tax-free to FIS and its shareholders for U.S. federal income tax purposes. The actual number of shares to be distributed to FIS shareholders will be determined prior to closing, as will the specific transaction structure. FIS is planning for the separation to be completed within the next 12 months. The proposed separation is subject to customary conditions, including final approval by the FIS Board of Directors, receipt of a tax opinion and a private letter ruling from the Internal Revenue Service, the filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission and obtaining of all required regulatory approvals. "No assurance can be given that a spin-off will in fact occur on FIS’ desired timetable or at all," the company stated.