Fidelity National Deal Weighs OnCertegy
ST. PETERSBURG, Fla. - (10/26/05) -- Cards processor Certegy Inc. saidcosts associated with its pending merger with Fidelity NationalInformation Services pushed down third quarter earnings 15% to$23.3 million, or 38 cents a share, compared to the third quarterlast year. The company reported Tuesday that $6.1 million ininvestment banking, legal, accounting and other costs related tothe pending deal, reduced its third quarter net. Even whilerevenues climbed 8% to $282.8 million for the quarter, over thesame period last year. For the first three quarters of the year,Certegy reported an 8% rise in revenues to $821.3 million, a 39%surge in net income to $94 million, or $1.49 a share, compared tothe first nine months last year. Certegy has agreed to combine withthe back-office and outsourcing business of Fidelity National, toform a new credit union and bank outsourcing giant known asFidelity National Information Services.