Fidelity National Information Services Inc. said its planned spinoff of Lender Processing Services Inc. will be tax-free to the two companies and their shareholders.
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The Internal Revenue Service has issued a ruling allowing the tax-free treatment for the spinoff, Fidelity National said Tuesday night.
The Jacksonville, Fla., vendor announced plans in October to spin off Lender Processing, which has been hit hard by turmoil in the mortgage market over the past year.
Fidelity has said it plans to complete the spinoff by midyear. The unit's Mortgage Servicing Package processes monthly payments for more than half the mortgages in the United States.
