FIS acquires Worldpay for $35 billion in cash and stock

Payment service provider Worldpay has changed hands again in a deal worth $43 billion, including debt. Fidelity National Information Services Inc. (FIS) acquired Worldpay for $35 billion in cash and stock, the companies announced in a press release. To date, it’s the largest deal that has ever taken place in the international payments sector. As a part of the deal, FIS will assume Worldpay’s debt. FIS' shareholders own the majority of the combined company with approximately 53 percent of stock while Worldpay's investors will retain the rest.

According to Gary Norcross, FIS chairman, president and CEO, “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. As a combined organization, we will bring the most modern solutions targeted at the highest growth markets.”

Due to the complementary nature of the solutions and services offered by the two companies, both should benefit from the merger. According to the press release, the firms expect $500 million of revenue synergies, and $400 million of run-rate expense synergies in the next three years.

The new company will have approximately $12.3 billion pro forma 2018 annual revenue. According to the report from the Boston Consulting Group and Swift, the payment industry is continuing to develop fast, and its revenue is projected to rise by more than $1 trillion by 2027 and reach $2.4 trillion globally.