Global Payments has announced its acquisition of a 100% ownership stake in Worldpay for $24.25 billion. As part of the transaction, FIS will receive Global Payments' Issuer Solutions business, allowing FIS to sharpen its focus on core banking and issuer services, while Global Payments deepens its commitment to merchant acquiring and payment acceptance.
Investor reactions were mixed: Global Payments' stock fell 17% following the news, reflecting concerns over integration risks and the company’s already complex M&A track record — having completed more than 20 acquisitions across merchant, issuer, and ISV segments. In contrast, FIS shares rose by 9%, signaling investor confidence in its streamlined strategic direction.
1. M&A (Merger & Acquisitions) History of Worldpay
- FIS originally bought Worldpay in 2019 for $43 billion, one of the largest acquisitions in the payments industry
- FIS sold majority (55%) stake to GTCR in 2023
- Worldpay is sold to Global Payments at 8.5x adjusted EBITDA rate ($24.25 billion deal evaluation)
2. M&A (Merger & Acquisitions) History of Global Payments
(select examples)
3. Global Payments, FIS, GTCR Ownership and Transaction Details
(in % of ownership stake)
Preacquisition, Worldpay has two owners: GTCR and FIS. FIS has a 45% minority stake, and GTCR has a 55% majority stake. Global Payments will acquire all shares from FIS and GTCR for full ownership of Worldpay.
- GTCR: For the 55% stake, GTCR will be given cash and stock, equaling a ~15% ownership stake in global payments
- FIS: For the 45% stake, FIS will be given the issuer solutions business of Global Payments (previously known as TSYS) along with cash. The issuer solutions business is sold to FIS at 12.3x adjusted EBITDA.
4. FIS Revenue
(in billions of USD, by solutions)
5. Global Payments Revenue
(in billions of USD, by solutions)
Select Key Observations
- FIS is refining its strategic direction by emphasizing its core banking solutions, highlighted by its acquisition of Global Payments’ Issuer Solutions business (ex-TSYS).
- Conversely, Global Payments — now the sole owner of Worldpay— is pivoting toward merchant payment acceptance, consolidating its presence in this space.
- Global Payments investors reacted negatively (17% decline following the announcement) driven by investor M&A weariness and concerns over organic growth and execution within the core merchant franchise.
- FIS investors reacted positively (9% increase following the announcement).
Please do not hesitate to contact Yuriy Kostenko at Yuriy@FlagshipAP.com with comments and questions.
