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.

To contact the reporter on this story: Matthew Monks in New York at mmonks1@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.