Fidelity National Now PlansDe-coupling
JACKSONVILLE, Fla. - (04/28/06) -- Fidelity National Financial Inc.,which spun off its industry leading title insurance agency andfinancial services outsourcing operations into separately tradedcompanies just months ago, said Thursday it plans to restructureagain to shed its controlling interests in both companies. Afterthe spin-offs, Fidelity National Financial owns 82% of FidelityNational Title, and a controlling 50.7% of Fidelity InformationServices. Meantime, Fidelity National Information Services, whichprovides core processing, lending and other services to thousandsof credit unions and banks, reported on a pro forma basis that netincome for its first quarter as a publicly traded company declined12% to $39.4 million, or 23 cents a share, even while revenues weresurging 38% to $900.9 million for the quarter. Fidelity Informationwas formed earlier this year by the spin-off of Fidelity National'scredit union and bank outsourcing business and its merger withCertegy. The operation also includes remnants of Aurum Technology,ALLTEL Information Services, VISTA Information Solutions, SanchezComputer Associates and InterCept acquired by Fidelity Nationalover the past three years. First quarter financials include costsof about $5.9 million, in accordance with the company's adoption ofFinancial Accounting Statement 123, for expensing options toCertegy executives as part of the merger, and $2.9 million ofmerger-related expenses. Fidelity National Title, the othersubsidiary of Fidelity National Financial, reported a 4% decline innet income to $79.1 million, or 46 cents a share, for the firstquarter, despite a 10% rise in revenues to $1.4 billion.