By Adriano Marchese

Global Payments has agreed to acquire Worldpay for $24.25 billion from Fidelity National Information Services and private equity firm GTCR, and divest its issuer solutions business to Fidelity for $13.5 billion.

The payment technology said Thursday that the transaction aims to simplify its business model and positions it as a pure-play commerce solutions provider for merchants of all sizes with on a global scale.

The transaction has a total value of $24.25 billion, including $1.55 billion of anticipated tax assets. The deal is expected to close in the first half of 2026.

Global Payments and Worldpay provide complementary payments, software and commerce enablement solutions to merchants and partners. With the newly combined and organized business, Global Payments expects to scale up to serve more than 6 million customers, 94 billion transactions and $3.7 trillion in volume across more than 175 countries.

Global Payments Chief Executive Cameron Bready said the acquisition of Worldpay and divestiture of Issuer Solutions further sharpens its 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.

Global Payments anticipates cost synergies of $600 million from the move, as well as revenue synergies of at least $200 million. In regards to earnings, the company expects accretion on a per-share basis in the first year after the deal closes.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

By Adriano Marchese

Global Payments is acquiring Worldpay for $24.25 billion in three-way deal with Fidelity National Information Services and private equity firm GTCR and shedding its Issuer Solutions business as it looks to double down on its core payments offering.

The transaction aims to simplify its business model and position the business as a pure-play commerce solutions provider for merchants of all sizes with on a global scale, the payment technology said Thursday.

The transaction has a total value of $24.25 billion, including $1.55 billion of anticipated tax assets for a net purchase price of $22.7 billion, while Fidelity is set to acquire the Issuer Solutions business from Global Payments for $13.5 billion.

The deal is expected to close in the first half of 2026.

Global Payments and Worldpay provide complementary payments, software and commerce enablement solutions to merchants and partners. With the newly combined and reorganized business, Global Payments expects to scale up to serve more than 6 million customers, processing 94 billion transactions and $3.7 trillion in volume across more than 175 countries.

Global Payments Chief Executive Cameron Bready said the acquisition of Worldpay and divestiture of Issuer Solutions further sharpens its strategic focus and simplify Global Payments as a pure play merchant solutions business. He said the new business will have significantly expanded capabilities, extensive scale, greater market access and an enhanced financial profile.

On the financial side of the deal, Global Payments anticipates cost synergies of $600 million from the move, as well as revenue synergies of at least $200 million. In regards to earnings, the company expects accretion on a per-share basis in the first year after the deal closes.

On the seller's side, Fidelity National is selling its 45% stake of Worldpay for $6.6 billion, while Chicago-based equity firm GTCR will sell its 55% majority interest.

For Fidelity National, the acquisition of Global Payments' Issuer Solutions business is a move to strengthen its position as a scaled fintech company with a wider global reach and an improved suite of products.

The business processes more than 40 billion transactions every year and has a series of strong partnerships with over 170 financial institutions and corporations, it said.

Long-term revenue synergies are projected to be in excess of $125 million a year. For earnings, company expects the acquisition to be accretive to adjusted earnings before interest, taxes, depreciation and amortization margins, adjusted earnings per share and adjusted free cash flow in the first 12 months.

By year three, Fidelity National expects Ebitda synergies to be in the range of $150 million a year.

As part of the Worldpay transaction, GTCR will receive 59% cash and 41% stock consideration and will continue to support the combined business through a successful integration and future growth, it said in a separate statement. After the transaction closes, GTCR will own 15% of Global Payments' outstanding shares.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 17, 2025 07:41 ET (11:41 GMT)

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