From Yahoo Finance: 2025-04-17 06:53:00

Global Payments has agreed to purchase Worldpay from FIS and GTCR for $24.25 billion, focusing on merchant services in a competitive payments market. The deal will make Global Payments a market leader, combining Worldpay’s online strength with Global’s expertise in small and mid-sized businesses. The combined company will serve over six million customers across 175 countries, generating $12.5 billion in revenue and $6.5 billion in core earnings.

The agreements will transform both Global Payments and FIS, with Global becoming a pureplay payments processor and FIS solidifying services to financial institutions. GTCR will see a substantial return on its investment in Worldpay, less than two years after acquiring a majority stake. The deal will streamline Global Payments’ business and boost returns after acquiring TSYS in 2019.

FIS is also undergoing significant changes, shifting focus to financial institutions and shedding its stake in Worldpay acquired for $43 billion in 2019. FIS Chief Executive Ferris sees the deal creating cross-selling opportunities and forecasts over $500 million in additional adjusted free cash flow in the first year. Analysts believe the deal will simplify FIS’s financial profile and address investor concerns about competitiveness.

Both companies aim to specialize in payments and address investor concerns about competitiveness against newer entrants. FIS and Global Payments have struggled to deliver share price growth in recent years, with FIS losing more than half its value since acquiring Worldpay in 2019. Global Payments’ stock has significantly underperformed FIS over the past year. Shares of Global Payments fell 17.4% while FIS rose 8.7% after the announcement of the deal.

The announcement of the deal was delayed due to wider market volatility. Goldman Sachs advised FIS, Wells Fargo advised Worldpay, and Morgan Stanley served as financial advisor to GTCR. The transactions are expected to close in the first quarter of 2026, with GTCR owning 15% of Global Payments.



Read more at Yahoo Finance: Global Payments agrees $24.25 billion Worldpay deal as industry heavyweights shift focus