, have broken up their sprawling businesses over the past few years as investors pushed for leaner operations and enhanced profitability in some of the core businesses.
FIS launched a strategic review of its operations in December following pressure from hedge funds D.E. Shaw and Jana Partners. Reuters was first to reportat the time it would pursue a tax-free spin-off of its merchant business and disclosed a $17.6 billion write-down related to its Worldpay acquisition. Analysts have cited under-investment and operational missteps for its unsuccessful integration of Worldpay.
The merchants business accounts for about 30% of the company's revenue, while FIS's banking technology arm constitutes about 46%, and capital markets the remainder.