JACKSONVILLE, Fla. – Fidelity National Information Services announced yesterday that the Securities and Exchange Commission has approved its spin-off of its Lender Processing Services unit, the largest mortgage processor in the country.
Fidelity National has received $1.6 billion in new financing to facilitate the deal, which will become the obligation of the new company after the spin-off.
In addition, the Internal Revenue Service has approved the spin-off as a tax-free transaction under which current Fidelity National shareholders will receive stock in the new company.
The spin-off is the latest in a series of financial engineering undertaken by Fidelity National, which was created by the combination of eight different back-office service providers with Fidelity National Title, the nation’s largest title insurer. Fidelity National Information was itself created by the separation last year from the title insurance business.
