FIS to acquire payment processing company Worldpay in $43bn deal

FIS acquisition of Worldpay : US financial services technology provider Fidelity National Information Services (FIS) has signed a $43 billion worth cash-cum-stock deal to acquire payment processing company Worldpay.

Worldpay, which operates three divisions – Global eCom, Worldpay US and Worldpay UK, provides solutions for multi-currency processing, card payments, online transactions and contactless payments.

Headquartered in Florida, Fidelity National Information Services (FIS) is focused on retail and institutional banking, payments, risk and compliance, asset and wealth management, and others.

FIS acquisition of Worldpay will help the former expand its capabilities considerably by enhancing its acquiring and payment offerings. And for Worldpay, the transaction will improve its distribution reach significantly and also accelerate its entry into new geographies.

The combined company will have nearly $12.3 billion pro forma 2018 annual revenue.

The deal amount includes Worldpay’s debt assumption by FIS, which the latter plans to refinance.

As per the terms of the FIS acquisition of Worldpay, shareholders of the latter will be given 0.9287 FIS shares plus $11.00 in cash for each share they own in the payment processing company.

After the transaction, FIS shareholders will own around 53% stake in the enlarged company with the remaining 47% or so stake to be held by Worldpay’s shareholders. The enlarged company will retain the name FIS and will continue to be headquartered in Jacksonville, Florida.

Commenting on FIS acquisition of Worldpay, Charles Drucker – executive chairman and CEO of Worldpay, said: “At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives. Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally.”

“We are proud to become part of one of the financial services industry’s most respected and consistently performing companies, and I am excited about the new opportunities this brings both for the business and our colleagues worldwide.”

The enlarged company, after the merger, will offer enterprise banking, capital markets, payments and global eCommerce capabilities to businesses and financial institutions all over the world.

The two companies’ services and solutions are complementary and encompass financial institution issuer services, loyalty and fraud solutions, network and merchant services, and others.

The merger will help their clients in accessing a wider portfolio of digital assets to improve revenue growth in quicker time, and also to streamline their operations and boost their customer engagement.

Gary Norcross – chairman, president and CEO of FIS, commenting on FIS acquisition of Worldpay, said: “Scale matters in our rapidly changing industry. Upon closing later this year, our two powerhouse organizations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.

“As a combined organization, we will bring the most modern solutions targeted at the highest growth markets. The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS.”

FIS acquisition of Worldpay is slated to be wrapped up in H2 2019 once it secures the necessary regulatory and shareholder approvals along with satisfying other customary closing conditions.