FIS® (NYSE: FIS), a global leader in financial technology, announced on April 17, 2025, a significant strategic move that includes the acquisition of Global Payments’ Issuer Solutions business for an enterprise value of $13.5 billion. Concurrently, FIS is selling its stake in Worldpay to Global Payments for $6.6 billion in pre-tax value. This dual transaction is poised to reshape the landscape of payment processing and fintech services.
FIS CEO and President Stephanie Ferris emphasized the importance of this acquisition, stating, "The acquisition of Issuer Solutions is a strategic and accretive transaction that will expand FIS’ payment product suite and deepen our relationships with financial institutions and corporate clients." Issuer Solutions is a global leader in credit processing, with a presence in over 75 countries and processing more than 40 billion transactions annually.
The acquisition is expected to deliver substantial financial benefits, including $45 million in incremental revenue synergies within three years and over $150 million in net EBITDA synergies. Ferris noted that the deal enhances FIS’ financial profile by replacing its non-cash generating minority stake in Worldpay with a growing stream of high-margin revenues and cash flows.
On the other side of the transaction, Global Payments Inc. (NYSE: GPN), a prominent provider of payment technology, is reshaping its business model by divesting its Issuer Solutions segment to FIS while simultaneously acquiring Worldpay for a net purchase price of $22.7 billion. This move is expected to position Global Payments as a leading commerce solutions provider, focusing on merchant services.
Global Payments CEO Cameron Bready remarked, "This transaction marks a defining day for Global Payments and a pivotal milestone in our journey to become the worldwide partner of choice for commerce solutions." The combination of Global Payments and Worldpay is expected to serve over 6 million customers, enabling approximately 94 billion transactions and processing $3.7 trillion in payment volume annually.
The deal will significantly enhance Global Payments’ financial strength, with expected pro forma adjusted net revenue of approximately $12.5 billion and adjusted EBITDA of about $6.5 billion. The company anticipates $600 million in annual cost synergies and at least $200 million in additional revenue synergies within three years post-closing.
This transformative three-way transaction also reflects a strategic partnership between Global Payments and FIS, which aims to offer a comprehensive suite of solutions globally. The two companies will collaborate to enhance their capabilities in core banking, treasury management, embedded commerce, issuer processing, risk and fraud management, and merchant solutions.
As part of the financing for the acquisition, Global Payments plans to utilize a combination of cash proceeds from the Issuer Solutions sale, cash on hand, and new debt. The company has secured committed bridge financing and plans to issue $7.7 billion of debt to facilitate the transaction.
Both transactions are expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. Bready expressed optimism about the future, stating, "We could not be more excited about the future, as we bring together Global Payments and Worldpay and establish a strategic partnership with FIS."
In the first quarter of 2025, Global Payments provided preliminary financial results, reporting adjusted net revenue of $2,205 million and adjusted earnings per share of $2.69. The company reaffirmed its full-year guidance for adjusted net revenue, adjusted operating margin, and adjusted earnings per share.
Analysts have noted that these transactions signify a major shift in the payments industry, with both companies aiming to leverage their strengths to capture a larger market share. InvestingPro analysis indicates that Global Payments appears undervalued compared to its fair value, presenting potential opportunities for investors interested in the payments sector.
The sale of Worldpay and the acquisition of Issuer Solutions are cross-conditioned, meaning they will close simultaneously. This strategic alignment underscores the importance of collaboration in the rapidly evolving fintech landscape.
As the payment industry continues to transform, these transactions highlight the competitive pressures and opportunities that companies face in adapting to new technologies and consumer demands. The combined expertise of FIS and Global Payments is expected to set new standards in payment processing and technology solutions.
In recent news, GTCR, the private equity firm involved in the Worldpay transaction, has expressed confidence in the future of the combined business. GTCR's Co-CEO Collin Roche stated, "We are proud of the transformation that we accomplished with Charles and the team, reestablishing Worldpay as an innovative, customer-centric, growth-focused independent company."
As the market awaits the closing of these significant deals, stakeholders across the payments industry are watching closely, anticipating the impact on market dynamics and customer offerings.
