Industry News

Fidelity to merge real estate loan unit with Certegy

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Fidelity National Financial will merge its mortgage processing unit with credit and debit processor Certegy in a deal that will give Fidelity majority control of the new publicly traded entity, the companies said today. Fidelity said it expected the new company to pull in revenue at a rate of nearly $4 billion a year and pegged its earnings before interest, taxes, depreciation and amortization at $1 billion. The name of the combined company will become Fidelity National Information Services Inc. and will trade on the New York Stock Exchange under the symbol "FIS." Fidelity National Chairman and Chief Executive William Foley II will be chairman of the new company, while Certegy Chairman and CEO Lee Kennedy will be CEO of the new company. Shares of Fidelity National rose more than 3 percent to $42.90 and Certegy's shares jumped more than 20 percent to $40.35 on Thursday morning in the wake of the deal. Fidelity National said the combination would spawn many cost-savings opportuniti...