Global Payments Acquires Worldpay for $24.25B and Divests Issuer Solutions for $13.5B: A Major Shift in Fintech Landscape
Global Payments, a leading provider of payment technology and software solutions based in Atlanta, has made significant moves in the financial sector. The company has announced its agreements to divest its Issuer Solutions business to FIS for a substantial US$13.5 billion and to acquire Worldpay, a Cincinnati-based payment processing giant, from GTCR and FIS for a net purchase price of US$22.7 billion. This strategic shift is set to redefine the landscape of payment solutions.
Details of the Transactions
The total value of the Worldpay acquisition amounts to US$24.25 billion, which includes US$1.55 billion in anticipated tax assets. Key financial metrics for the transactions are:
- Issuer Solutions: 12.3x adjusted EBITDA multiple
- Worldpay: 8.5x adjusted EBITDA multiple
Impact on Global Payments and Worldpay
Upon completion of these transactions, Global Payments and Worldpay will merge their extensive payment, software, and commerce enablement services. This collaboration will:
- Serve over 6 million customers
- Process approximately 94 billion transactions
- Total US$3.7 trillion in transaction volume across more than 175 countries
Statements from Leadership
Cameron Bready, CEO of Global Payments, emphasized that this is a “defining day” for the company. He stated that the transactions would “further sharpen our strategic focus and simplify Global Payments as a pure play merchant solutions business with significantly expanded capabilities, extensive scale, greater market access, and an enhanced financial profile.”
Furthermore, Bready highlighted:
“This transaction provides us with one of the world’s most feature-rich platforms to support e-commerce and enterprise customers across key high-growth geographies and verticals, while also enhancing our integrated and embedded capabilities to deliver seamless solutions to software and platform providers worldwide.”
Worldpay’s Perspective
Charles Drucker, CEO of Worldpay, expressed enthusiasm about the merger, stating:
“We are excited to enter this next phase of Worldpay’s evolution by uniting with Global Payments to create something special in the payments industry. Our solutions will enhance value for our customers, especially for Worldpay’s small and medium-sized businesses.”
Conclusion
The strategic acquisition of Worldpay by Global Payments marks a significant milestone in the payment processing industry. This move is poised to enhance both companies’ capabilities and market reach, setting the stage for future growth and innovation in the sector.
For more information on payment technology trends, visit this resource. To learn more about Global Payments, check their official website.
