- In a $43 Billion deal FIS wins ownership of Worldpay
- The new entity will create $12 Bn of revenue yearly
- The fusion of the payments and processing firms is the latest trend
FIS, which offers software for payment processing in consort with a plethora of monetary services, has lately made it to the headlines for acquiring Worldpay, which provides technology solutions that underprops payments for e-commerce websites.
Two of the world’s payment behemoths are reportedly joining forces in a giant $43 Bn deal.
According to a joint statement released by the two companies, the newly formed business entity would have yearly proceeds of more than $12 Bn, putting them in a better place to serve the growing global e-commerce industry.
Sources familiar with the development claim that the firms are trying to build a one-stop shop as global payments are anticipated to reach around $3 trillion in the coming five years.
Worldpay and FIS struck the deal owing to the fusion of the payments and processing industries. In a recent turn of events, FIS’ prime competitor Fiserv acquired First Data, a payments competitor to Worldpay.
Gary Norcross, Chief Executive Officer of FIS, stated that as a combined entity we would bring the latest solutions aimed at highest growth markets.
Reportedly, Worldpay shares surged about 11 percent on Monday during early trading.
As per credible sources, FIS will provide Worldpay shareholders a blend of stock and cash to conclude the deal. It would assume Worldpay’s debt as a part of the deal which values the firm at $43 Bn.
FIS shareholders would end up holding 53 percent of the combined entity, while Worldpay shareholders would own 47 percent stake in the business, reported sources.
Reportedly, the deal is anticipated to close in late 2019.
For the uninitiated, Worldpay processes approximately 40 Bn transactions every year. The deal will help Worldpay expand into novel markets and outdo global payment rivals, cited sources familiar with the deal.