FIS, a global leader in financial services technology, has made a strategic move to sell a majority stake in its Worldpay Merchant Solutions business to private equity funds managed by GTCR.
The deal, valuing Worldpay at $18.5bn, will allow FIS to retain 45% ownership. GTCR will bolster Worldpay’s growth strategy with an additional capital investment of up to $1.25bn.
The sale is a key part of FIS’s strategy to streamline and focus more intensely on its core financial technology and software solutions. By monetising part of its Merchant Solutions business, the company aims to deliver innovative, next-generation financial technology solutions. Meanwhile, Worldpay will become a privately held company, expected to benefit from GTCR’s resources and expertise.
Worldpay is among the world’s largest global merchant acquirers, boasting $2trn in payments volume in 2022. It will continue to offer commerce solutions to merchants of all sizes. FIS, on the other hand, will persist as a leading provider of financial technology solutions for financial institutions, capital markets firms, corporates, and developers across the globe.
Additionally, FIS and Worldpay plan to enter commercial agreements, allowing Worldpay to continue selling FIS products, and FIS to maintain access to Worldpay’s clientele. This strategic move aims to minimise potential dis-synergies and add value for clients of both businesses.
Upon closing, Worldpay will operate under the leadership of Charles Drucker as CEO. The deal, which has received unanimous approval from FIS’s Board of Directors, is set to close by Q1 2024, subject to regulatory approvals and other customary closing conditions.
FIS CEO and President Stephanie Ferris commented, “This transaction allows FIS to partially monetise our Merchant Solutions business at an attractive valuation and provides certainty for all stakeholders. It also allows us to simplify and drive greater focus on delivering innovative, next-generation financial technology and software solutions.
“At the same time, Worldpay will become a privately held company and benefit from the resources and expertise of GTCR, which has committed additional capital to allow Worldpay to pursue inorganic growth in the rapidly evolving payments space.”
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