FIS acquires Worldpay in $43 merger deal
Worldpay has been snapped up in a $43 billion deal by US financial giant Fidelity National Information Service (FIS). When ecommerce started out, Worldpay was one of the first ports of call for merchants wanting a payment provider for their website although high costs, long settlement times and stringent rules meant in later years PayPal checkout quickly replaced them for new merchants wanting a quick low cost and effective solution.
Worldpay used to be a part of RBS but the sale was ordered when the bank became mired in financial difficulties. Since then demand for their services have surged as the growth of online shopping accelerates and they are used by many of the largest retailers. Today they process over 40 billion transactions annually, supporting more than 300 payment types across more than 120 currencies.
The combined group will aim to continue growth the benefit of scale and sell more services to banks and financial customers by combining FIS’s strength with Worldpay’s payment technology and global presence.
“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.”
– Charles Drucker, executive chairman and chief executive officer, Worldpay
Shareholders will be entitled to receive 0.9287 FIS shares and $11.00 in cash for each share of Worldpay. Upon closing, FIS shareholders will own approximately 53% and Worldpay shareholders will own approximately 47% of the combined company. The combination of stock and cash values Worldpay at an enterprise value of approximately $43 billion, including the assumption of the company’s debt, which FIS expects to refinance.