Payments firm FIS eyes deal to shrink capital markets business -sources

By David French

July 22 (Reuters) - Payments processing giant Fidelity National Information Services Inc is exploring divesting parts of its capital markets business, potentially worth as much as $2 billion, people familiar with the matter said on Thursday.

FIS has been focused on growing its digital payments offerings as more commerce flows through online channels. It has also been making a push into the processing of transactions in cryptocurrencies.

The company is working with an investment bank on an auction for a package of its capital markets assets that includes treasury management, its alternative trading system platform and a unit that focuses on algorithm-based trading, the sources said.

The trio generate 12-month earnings before interest, tax, depreciation and amortization of more than $80 million, the sources added.

No deal is certain, cautioned the sources, who requested anonymity because the matter is confidential.

An FIS spokesperson declined to comment.

Based in Jacksonville, Florida, FIS processes transactions in 146 countries. A major vendor of payment processing services for banks, it expanded its global payments offering with the $35 billion acquisition of Worldpay in 2019. It has been using its cash flow to buy back shares and pay down debt, which stood at $19.4 billion at the end of March.

The capital markets business posted 5% revenue growth in the first quarter, second among the FIS business divisions after banking solutions. Among the capital markets functions that FIS is seeking to keep are securities processing and asset management and insurance, according to the sources.

(Reporting by David French in New York; Editing by Dan Grebler)