FIS Buys Worldpay
FIS buys Worldpay.
Fidelity National Information Services buys Worldpay. The blend of stock and cash values the deal at $43 billion, including $7.7 billion debt. FIS shareholders will own 53 percent of the joint company. Worldpay shareholders will own the balance of 47 percent.
Worldpay is a major card payments fintech firm, especially in the United Kingdom. FIS provides software and outsourcing services to banks, asset managers, and insurers, as well as financial services outsourcing.
FIS and Worldpay offer the technological infrastructure that lets you securely pay an e-commerce vendor anywhere in the world. Or tap your card to buy a cup of cappuccino or chai or kombucha. The merger echoes earlier deals, combining once-specialized companies to become a one-stop shop, providing all their customers’ payment needs. Keep it simple. Worldpay processes 40 billion transactions each year and supports 300 payment types in 120 currencies.
For FIS, who provides a wide range of services, ranging from core banking platforms to asset management software, the deal delivers a way to bulk up its business providing payment services to retailers and e-commerce companies. For Worldpay, FIS’s stronger presence in fast-growing markets like Brazil and India provides an opportunity to speed up its international expansion.
Gary Norcross of FIS said: ‘Scale matters in our 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. This deal responds to the massive change that’s occurring throughout the industry, driven by modernization and innovation. You have to grab the growth and move toward where the growth is when you have the time.’
Charles Drucker of Worldpay said: ‘This is all about an offensive deal and going to where the growth is happening and looking in the long term.’
Russ Mould of AJ Bell said: ‘Parking the two companies together gives the enlarged business a strong position by which to play the structural growth in digital payments. They will be able to offer clients a wider portfolio of services.’
Michael Schaefer of Union Investment said: ‘FIS should speed up its revenue growth, expand its position in the merchant acquiring space, and generate synergies.’
Brett Huff of Stephens said: ‘FIS’s experience and ability in getting cost to revenue synergies should give the market confidence that the targets announced around this deal are doable.’
Stuart Bedford of Linklaters said: ‘As predicted, 2019 is turning out to be the year for consolidation in the fintech industry and the payments sector.’
Gareth Wilson of Accenture said: ‘Consolidation in the market looks set to continue for payment companies to grow globally at scale and compete with the competitive threat of new entrants to the industry.’
Darrin Peller of Wolfe Research said: ‘I would not be surprised if we saw another deal in merchant payments technology before long.’
Centerview Partners and Goldman Sachs were financial advisers to FIS. Willkie Farr & Gallagher served as legal advisers.
Credit Suisse was a financial adviser to Worldpay. Skadden, Arps, Slate, Meagher & Flom served as legal adviser.
Fidelity National Information Services buys Worldpay. The blend of stock and cash values the deal at $43 billion, including $7.7 billion debt. FIS shareholders will own 53 percent of the joint company. Worldpay shareholders will own the balance of 47 percent.
Worldpay is a major card payments fintech firm, especially in the United Kingdom. FIS provides software and outsourcing services to banks, asset managers, and insurers, as well as financial services outsourcing.
FIS and Worldpay offer the technological infrastructure that lets you securely pay an e-commerce vendor anywhere in the world. Or tap your card to buy a cup of cappuccino or chai or kombucha. The merger echoes earlier deals, combining once-specialized companies to become a one-stop shop, providing all their customers’ payment needs. Keep it simple. Worldpay processes 40 billion transactions each year and supports 300 payment types in 120 currencies.
For FIS, who provides a wide range of services, ranging from core banking platforms to asset management software, the deal delivers a way to bulk up its business providing payment services to retailers and e-commerce companies. For Worldpay, FIS’s stronger presence in fast-growing markets like Brazil and India provides an opportunity to speed up its international expansion.
Gary Norcross of FIS said: ‘Scale matters in our 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. This deal responds to the massive change that’s occurring throughout the industry, driven by modernization and innovation. You have to grab the growth and move toward where the growth is when you have the time.’
Charles Drucker of Worldpay said: ‘This is all about an offensive deal and going to where the growth is happening and looking in the long term.’
Russ Mould of AJ Bell said: ‘Parking the two companies together gives the enlarged business a strong position by which to play the structural growth in digital payments. They will be able to offer clients a wider portfolio of services.’
Michael Schaefer of Union Investment said: ‘FIS should speed up its revenue growth, expand its position in the merchant acquiring space, and generate synergies.’
Brett Huff of Stephens said: ‘FIS’s experience and ability in getting cost to revenue synergies should give the market confidence that the targets announced around this deal are doable.’
Stuart Bedford of Linklaters said: ‘As predicted, 2019 is turning out to be the year for consolidation in the fintech industry and the payments sector.’
Gareth Wilson of Accenture said: ‘Consolidation in the market looks set to continue for payment companies to grow globally at scale and compete with the competitive threat of new entrants to the industry.’
Darrin Peller of Wolfe Research said: ‘I would not be surprised if we saw another deal in merchant payments technology before long.’
Centerview Partners and Goldman Sachs were financial advisers to FIS. Willkie Farr & Gallagher served as legal advisers.
Credit Suisse was a financial adviser to Worldpay. Skadden, Arps, Slate, Meagher & Flom served as legal adviser.
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