FIS Said to Seek Sale of Unit That Handles Food-Stamp Payments
Fidelity National Information Services Inc. (FIS) is selling its electronic benefits-transfer business, which helps the government make food-stamp payments, people with knowledge of the matter said.
The card payment processor is working with Bank of America Corp. (BAC) to sell the business, which may fetch more than $200 million, said one of the people, who asked not to be identified because the matter is private. First-round bids are due next week, the people said.
Fidelity National, which does business as FIS, is selling units to focus on financial institutions. Last year, the Jacksonville, Florida-based company sold its health-care benefit business to Lightyear Capital LLC for $335 million.
Brad Fennessy, a spokesman for FIS, declined to comment, as did John Yiannacopoulos, a spokesman for Bank of America.
The food-stamp unit serves clients in 25 states according to a press release last year. It generates about $25 million in annual earnings before interest, taxes, amortization and depreciation, said the people.
Fidelity National Financial Inc. (FNF) spun off Fidelity National Information Services in 2006.
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