In a landmark move for the payments industry, Global Payments Inc. has announced its agreement to acquire Worldpay from private equity firm GTCR and Fidelity National Information Services (FIS) for a staggering net purchase price of $22.7 billion. Simultaneously, the company will divest its Issuer Solutions business to FIS for $13.5 billion. This strategic maneuver not only positions Global Payments as a leading merchant solutions provider but also simplifies its business model significantly.
The acquisition of Worldpay, which is expected to close in the first half of 2026 pending regulatory approval, will enable Global Payments to serve approximately six million customers globally, processing an impressive 94 billion transactions and handling $3.7 trillion in payment volume across more than 175 countries. The total value of the Worldpay deal amounts to $24.25 billion, factoring in $1.55 billion of anticipated tax assets, representing an 8.5x adjusted EBITDA multiple for Worldpay on a net basis, inclusive of run-rate synergies.
“Today marks a defining day for Global Payments and a pivotal milestone in our journey to become the worldwide partner of choice for commerce solutions,” stated Cameron Bready, CEO of Global Payments. He emphasized that the acquisition and divestiture sharpen the company’s strategic focus, simplifying it into a pure-play merchant solutions business.
Worldpay is renowned for its comprehensive payment processing services, enabling merchants to accept card payments online, in-person, and via mobile devices. The merger will enhance Global Payments’ ecommerce capabilities and expand its integrated and embedded payment offerings for software platforms. These integrated payments allow software providers to embed payment processing directly within their applications, while embedded finance refers to non-financial companies incorporating financial services into their products.
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.”
The financial implications of this transaction are significant. The combined entity is projected to achieve pro forma 2025 annual adjusted net revenue of approximately $12.5 billion and adjusted EBITDA of $6.5 billion, inclusive of run-rate expense synergies. Global Payments anticipates cost synergies of about $600 million annually over three years post-closing, primarily through the integration of business operations, technology infrastructure, and scale efficiencies. Additionally, revenue synergies of at least $200 million are expected over the same timeframe as the company capitalizes on cross-selling opportunities.
According to financial analysts, the deal is expected to be modestly accretive to earnings in the first year following completion, with mid to high single-digit accretion thereafter. Global Payments aims to maintain its investment-grade credit ratings and expects net leverage of approximately 3.5x at closing, with plans to reduce this to 3.0x within 18 to 24 months.
Transaction details reveal that the acquisition of Worldpay will be financed through a combination of cash proceeds from the sale of Issuer Solutions, existing cash on the balance sheet, and approximately $7.7 billion in new debt. GTCR will receive shares in Global Payments at a price of $97.00, representing about 15% of Global Payments' outstanding shares on a pro forma basis.
The strategic rationale behind this transaction is clear. Global Payments is shifting its focus toward a merchant solutions model, emphasizing small and medium businesses while integrating Worldpay's capabilities for ecommerce and enterprise clients. This merger diversifies Global Payments' business mix and strengthens its ecommerce capabilities, allowing it to offer an enhanced suite of services to its clients.
In the broader context, the payments sector has seen significant changes in recent years, with embedded payments becoming a focal point in eCommerce and enterprise business models. The latest announcements from Global Payments reflect a trend toward creating more integrated solutions that cater to the evolving needs of merchants and consumers alike.
FIS, meanwhile, stands to gain significantly from acquiring Global Payments’ Issuer Solutions business. This unit processes approximately 40 billion transactions annually across 75 countries and has established relationships with around 170 financial institutions and companies. Stephanie Ferris, CEO of FIS, commented on the 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.”
The transactions are poised to reshape the competitive landscape of the payments industry, as both companies aim to leverage their combined capabilities to drive growth and innovation. The anticipated growth in ecommerce and digital payment solutions aligns with the strategic objectives of both Global Payments and FIS.
As the payments sector continues to evolve, analysts have noted potential risks associated with these large-scale transactions. Global Payments faces integration challenges as it navigates its transition, which could impact revenue growth in the short term. Additionally, Fitch Ratings has expressed concerns regarding FIS' ability to effectively merge the businesses, downgrading its outlook for the company to "stable" from "positive."
Despite these challenges, both Global Payments and FIS are optimistic about the future. The combined entity promises to enhance client and partner experiences with innovative solutions, positioning itself as a leader in the rapidly changing payments landscape. As the industry adapts to new technologies and consumer preferences, the success of these strategic moves will be closely monitored.
In summary, this monumental acquisition and divestiture not only marks a significant chapter for Global Payments and FIS but also sets the stage for a new era in the payments industry, characterized by enhanced capabilities and a focus on integrated solutions for merchants worldwide.
