Fidelity National Information Services closer to spinning off lender processing services business

By Lisa Kerner

Charlotte, N.C., March 27 - Fidelity National Information Services, Inc. plans to contribute all of its interest in the assets, liabilities, businesses and employees related to the operations of its lender processing services operations as of the date of the spinoff to its newly formed subsidiary ,LPS, Inc.

In exchange, Fidelity National will receive additional shares of common stock of LPS and up to $1.6 billion in new LPS debt obligations, according to a form 8-K filing with the Securities and Exchange Commission.

Once its contribution is complete, Fidelity National expects to distribute all the shares of LPS to its shareholders and exchange the new LPS debt obligations for an equal principal amount of its own existing debt, the filing stated.

Fidelity National said the nature, amount and terms of the new LPS debt obligations will be determined closer to the spinoff date, previously reported to be in mid-2008.

In October, Fidelity National announced a plan to spin off the company's lender processing services division into a separate publicly traded company.

It was previously reported that Fidelity National acquired EFD/eFunds Corp. for $36.50 per share, or $1.8 billion in cash, in September. eFunds is a Scottsdale, Ariz., provider of risk management, electronic payments and global outsourcing solutions.

Fidelity National, located in Jacksonville, Fla., provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products.

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