FIS has announced that it has offered $43 billion to buy Worldpay, in a deal that would create one of the largest providers of payments infrastructure that powers banks and payments.
This represents the latest mega deal in a wave across the payments industry and the second time the Worldpay business has been acquired in as many years.
Worldpay became the UK’s largest payments firm before it was taken over by Vantiv in a $10.4 billion deal which started in 2017.
The bid values Worldpay’s shares at roughly $112, a premium of just over 13% from its close last week. The combination values Worldpay at about $43 billion, which includes the payment group’s net debt of $7.7 billion. FIS shareholders will own about 53%, while Worldpay holders will own the remainder.
The combined group would have generated revenues of $12.3 billion and adjusted EBITDA of $4.9 billion in 2018. “Scale matters in our rapidly changing industry,” said FIS’s Gary Norcross, who will remain chairman of the board of directors, president and chief executive.
FIS said it will look to reap $700 million of EBITDA synergies from cost cutting and cross-selling over the next three years. The deal will see FIS retain its headquarters and get to name seven directors to a 12 member board, while Worldpay will get the other five.
FIS develops technology ranging from the core banking platforms that power retail lenders’ systems to software for asset managers. The company has grown through more than a dozen acquisitions in the last 15 years.
Worldpay specialises in services that enable merchants to take digital payments. Worldpay processes some 40 billion transactions annually in 146 countries and 126 currencies.
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