FIS

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Fidelity National Information Services, Inc.
TypePublic
NYSE: FIS
S&P 500 Component
IndustryFinancial Sector
Founded1968; 54 years ago (1968)
HeadquartersJacksonville, Florida, U.S.
Key people
Gary A. Norcross
(Chairman, President & CEO)
ProductsBanking Technology, Payment Technology, Processing Services, Information Based services
RevenueIncrease$12.2 billion USD (2019)[1]
Decrease$1.064 1,076.3 billion USD (2013)[1]
Decrease$825.0 million USD (2013)[1]
Number of employees
55,000 [2] (2017)
Websitewww.fisglobal.com

Fidelity National Information Services, Inc. (or FIS) is an American company on the Fortune 500 list which offers a wide range of financial products and services.

Headquartered in Jacksonville, Florida|Jacksonville, Florida, FIS employs approximately 55,000 people worldwide. After finalizing FIS' most recent deal - as well as the industry's largest-ever (by far) - to acquire Worldpay for $35 billion in Q3 of 2019, FIS became the largest processing and payments company in the world.[3] FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and 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.[4]

FIS was ranked second in the FinTech Forward 2016 rankings.[5]

Operations[edit]

FIS has a portfolio of products for the financial services sector, including both retail and investment banking.[6]

They include "Profile" - a banking application based on the open source GT.M, a transaction processing database engine maintained by FIS.[7]

Derivatives Utility[edit]

With the acquisition of SunGard in 2015, FIS launched Derivatives Utility to transform Derivatives Clearing BSPT processing world-wide. This will guide derivatives clearing for futures commission merchants to save on total cost of ownership (TCO), and the ability to allow a large focus of the operations processing to FIS, freeing each merchant to focus on each of their clients. Allowing futures merchants to reduce operational risk. Beginning with Barclays in 2015, Credit Suisse in 2016, and Wedbush Securities one of the largest capitalized non-bank futures commission merchants in the United States, will move its operations processing and technology management to the FIS Derivatives Utility in 2018.

Mergers and acquisitions[edit]

Throughout its history FIS has made many acquisitions.[8] Its largest to date would have been the reported merger with Global_Payments, a deal estimated around US$70 billion, but which fell apart at the last minute in December 2020. However, it is expected to be revisited in 2021.[9]

  • Alltel Information Services, 2003 $1.05 billion[8]
  • WebTone Technologies, 2003[10][11]
  • Sanchez Computer Associates, 2004 $175 million[12]
  • Aurum Technology, 2004[13]
  • BankWare, 2004[14]
  • InterCept, 2004[15]
  • Kordoba GmbH & Co, 2004 $163.2 million[8]
  • Merger with Certegy Inc.,2006 $1.8 billion[8][16]
  • eFunds Corporation (EFD)
  • Metavante Corporation, 2009 $2.94 billion in stock[17]
  • Compliance Coach, Inc, 2010[18]
  • Capco, 2010, $292 million.[19] In May 2017 FIS sold a 60% stake in Capco to CD&R funds for $477 million.[20]
  • TDWI - Toronto Dominion Wealth Institutional - now re-branded as Platform Securities, 2013[21]
  • mFoundry, 2013, $120 million[22]
  • CMSI, 2014[23][24]
  • Reliance Trust Company, 2014[25] $110 million
  • Clear2Pay, 2014[26][27] $480 million
  • SunGard Data Systems, 2015[28] $9.1 billion
  • Worldpay, Inc., 2019[29] $43 billion (Deal Signed 31 July 2019)
  • Zenmonics [30]

Finances[edit]

Over the last decade (May 2010 through May 2020), FIS stock on the NYSE has risen dramatically from $27.52/share on 5/23/2010, to $135.44/share as of 5/19/2020. This represents a relative 10Y increase of 392%, or as measured in absolutes - a gain of $107.92 per share from May 2010 through May 2020.[31]

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.[32]

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.[33]

Year Revenue
in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Price per Share
in USD$
Employees
2005 2,688 197 4,189 15.77
2006 2,417 259 7,631 18.08
2007 2,893 561 9,795 22.46
2008 3,360 215 7,500 17.28
2009 3,711 106 13,998 18.23
2010 5,146 405 14,176 23.27
2011 5,626 470 13,873 25.85
2012 5,796 461 13,550 29.22
2013 6,063 493 13,960 40.54 38,000
2014 6,413 679 14,521 52.41 40,000
2015 6,596 632 26,200 62.80 55,000
2016 9,241 568 26,031 69.40 55,000
2017 9,123 1,319 24,517 86.11 53,000

Controversies[edit]

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. 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".[34]

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.[35]

References[edit]

  1. 1.0 1.1 1.2 "10-K". FIS. 28 February 2014. p. 23. Archived from the original (PDF) on 30 November 2014. Retrieved 29 November 2014.
  2. "Fidelity National Information Services". Fortune. Retrieved 2018-12-03.
  3. Fuscaldo, Donna. "FIS Buys Worldpay For $35 Billion As Payment Consolidation Heats Up". Forbes. Retrieved 2020-05-20.
  4. "About Our Company - FIS".
  5. "FinTech Forward 2016". American Banker.
  6. "Enterprise Financial Systems - FIS".
  7. "Tuning and Optimizing the Red Hat Core Banking Pla" (PDF). www.redhat.com. 2007. Retrieved 2019-09-15.
  8. 8.0 8.1 8.2 8.3 "About Our Company - FIS".
  9. "FIS, Global Payments Held Unsuccessful Talks to Merge". 20 December 2020.
  10. "FIS acquires WebTone Technologies | Startup Ranking". StartupRanking. Retrieved 2020-12-29.
  11. "Fidelity National buys WebTone". www.bizjournals.com. Retrieved 2020-12-29.
  12. "Fidelity National Financial acquires Sanchez". 29 January 2004.
  13. "Fidelity National Financial to acquire Aurum Technology". 9 February 2004.
  14. "Fidelity National Financial acquires Bankware and Pro-Soft". 7 April 2004.
  15. "Fidelity to buy InterCept; postpones IPO". 9 September 2004.
  16. "Certegy shareholders agree to Fidelity merger". 27 January 2006.
  17. "Media Room".
  18. "FIS to Acquire Compliance Coach, Inc". Retrieved 2018-07-05.
  19. "Capco - Financial Services Business and Technology Consultants".
  20. "FIS To Sell 60% Equity Interest In Capco; To Receive $477 Mln In Cash Proceeds". 22 May 2017.
  21. "- FIS acquisition of Platform Securities completed".
  22. "FIS acquires mobile banking guru mFoundry for $120 million".
  23. "FIS acquires loan origination software vendor CMSI". Finextra Research. 2014-04-14. Retrieved 2020-12-29.
  24. "FIS Acquires Loan Origination Company CMSI". American Banker. 2014-04-14. Retrieved 2020-12-29.
  25. "FIS Completes Acquisition of Reliance Financial Corporation".
  26. "Archived copy". Archived from the original on 2014-09-03. Retrieved 2014-09-03.CS1 maint: archived copy as title (link)
  27. "Archived copy". Archived from the original on 2014-10-08. Retrieved 2014-10-08.CS1 maint: archived copy as title (link)
  28. "FIS to Acquire SunGard".
  29. "FIS and Worldpay to Combine to Accelerate the Future of Finance and Commerce Globally". www.businesswire.com. March 18, 2019.
  30. "FIS-invests-in-Zenmonics".
  31. "FIS Interactive Stock Chart Fidelity National Information Services, Inc. Stock - Yahoo Finance". finance.yahoo.com. Retrieved 2020-05-20.
  32. "FIS Reports First Quarter 2020 Results". FIS. Retrieved 2020-05-20.
  33. "Fidelity National Information Services Revenue 2006-2018 | FIS". www.macrotrends.net. Retrieved 2018-11-06.
  34. "Data breach generates class action lawsuit". Network World. 2007-08-21.
  35. "Coordinated ATM Heist Nets Thieves $13M". Brian Krebs. 2011-08-26.