Fidelity National Financial, Jacksonville, Fla., has agreed to sell a 25% stake in its mortgage and banking technology business, Fidelity National Information Services, to Thomas H. Lee Partners LP and Texas Pacific Group for $500 million.Fidelity National Information Services (known internally as FIS), a subsidiary of the title insurance giant, owns the former Alltel Information Services, the largest residential servicing bureau in the nation. The sale to THLP/TPG was announced in tandem with a $2.8 billion recapitalization plan for FIS. Under that plan, FIS will obtain $2.8 billion in senior secured credit facilities from a consortium of lenders. FIS will repay all its outstanding debt using the credit line and distribute $2.7 billion to Fidelity National. Once the deal is closed, Fidelity will pay a $10-per-share dividend to its shareholders. Of the $500 million that THLP and TPG are paying, Fidelity will book a gain of $375 million. The company said the dividend payment is not contingent on the FIS sale to THLP/TPG. In early September, Fidelity announced that it was delaying a spinoff of FIS. Fidelity can be found online at http://www.fnf.com.

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