Fintech FIS to buy payment firm Worldpay in $43bn merger
Fidelity National Information Services Inc. (FIS), a US-based financial services technology company, has unveiled plans to buy Worldpay Inc. for $34bn in cash and stocks.
The deal represents one of the largest mergers in the fast-growing payments sector and comes as the latest in a wave of consolidations in the payments technology market.
Through the transaction, Florida-based FIS will assume Worldpay’s debt bringing the enterprise value of the deal to $43bn.
FIS’s current shareholders will own around 53% of the combined company, while Worldpay’s investors will hold 47%.
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Commenting on the deal, Gary Norcross, chairman, president and chief executive officer of FIS, said that “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,” he added.
The combined company will retain the name FIS and will be headquartered in Jacksonville, Florida.
The new company expects to see $500 million of revenue synergies, $400 million of run-rate expense synergies and nearly $4.5 billion of free cash flow in three years.
“This combination greatly expands FIS’ capabilities by enhancing its acquiring and payment offerings and significantly increases Worldpay’s distribution footprint, accelerating its entry into new geographies,” the companies said in a statement.
“Upon closing, the combined company will be positioned to offer best-in-class enterprise banking, payments, capital markets, and global eCommerce capabilities empowering financial institutions and businesses worldwide."
Worldpay is a British payment processor that offers services such as card payments, multi-currency processing, online payments and contactless.
On a typical day, it processes over 31 million mobile, online and in-store transactions – around 400 a second.