Reuters: Private Equity: UPDATE 1-FIS to sell healthcare benefit solutions unit for $335 mln

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UPDATE 1-FIS to sell healthcare benefit solutions unit for $335 mln Jun 25th 2012, 12:48 Mon Jun 25, 2012 8:48am EDT * Transaction expected to close in Q3 * Expects to incur after-tax loss of $55 mln after closing deal * Sale to reduce Q2 adj EPS from cont ops by $0.02 * Sale to reduce FY EPS from cont ops by $0.07 June 25 (Reuters) - Payment processor Fidelity National Information Services Inc said it would sell its healthcare benefit solutions business to private equity firm Lightyear Capital for $335 million in cash. FIS expects to incur an after-tax loss of about $55 million, or 19 cents per share, upon completion of the sale in the third quarter The company expects the sale to reduce adjusted earnings per share from continuing operations by about 2 cents in the second quarter. Full-year earnings per share from continuing operations will fall by 7 cents, before any reinvestment of net proceeds, FIS said. "The divestiture is consistent with our primary focus to serve financial institutions, as well as our strategy to maintain leadership positions in markets where we have meaningful scale," FIS Chief Executive Frank Martire said in a statement. The company said it would retain its state and federal government-sponsored electronic benefits transfer businesses and programs. FIS's shares closed at $33.28 on Friday on the New York Stock Exchange. Link this Share this Digg this Email Reprints

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