PRINT THIS PAGE US buy-out firms to take minority stake in Fidelity National Information Services09/12/2004. Source: AltAssets. 
 US buy-out groups Texas Pacific Group and Thomas H. Lee Partners are about to acquire a 25 per cent stake in Fidelity National Information Services from its parent Fidelity National Financial for around $500m.
It has been reported that TPG and Thomas H. Lee Partners had originally planned to buy a much more significant share but then had to settle for 25 per cent. The closing of the sale is subject to terms and conditions, including the signing of a definitive stock purchase agreement.
Under the proposed agreement, THL and TPG would receive proportional representation on the FIS board of directors.
The sale of the minority stake is part of FNF's leveraged recapitalisation plan for FIS. Upon the successful completion of the recapitalisation, FNF has announced that it will pay a special $10 per share cash dividend to FNF stockholders.
'We have investigated a significant number of alternatives to begin to recognise the embedded value of FIS, our financial processing business,' said chairman and chief executive officer William P Foley, II.
'We believe that the recapitalisation of FIS and subsequent $10 per share special cash dividend to FNF stockholders provides significant, immediate value to our stockholders, while allowing FNF to recoup its entire investment in FIS in a tax effective manner,' he continued.
'Additionally, the investment in FIS by respected private equity investors THL and TPG is another step in unlocking the value of FIS by providing an independent, third-party valuation for FIS that could result in meaningful current value creation for FNF and our stockholders, while retaining 75 per cent of the benefit from the future growth and success of FIS,' he added.
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