Global Payments is expanding into merchant services with
the acquisition of Worldpay for $24.25 billion. The move is part of a complex
three-way transaction involving private equity firm GTCR and former parent FIS.
According to the company’s announcement, the transaction combines two major players in digital payments and transforms Global Payments into a merchant-focused company. Worldpay brings a portfolio of enterprise and
e-commerce clients, complementing Global Payments’ focus on small and mid-sized businesses.
Targeting $3 Trillion Annually
Together, the companies will reportedly serve over six million
customers across 175 countries, handling 94 billion transactions totaling $3.7
trillion annually. With its $13.5 billion sale of the issuer solutions
division to FIS, Global Payments is seeking more expansion. This shift comes amid heightened competition from rivals such as
PayPal, Adyen, Stripe, Fiserv, and Block.
“Our collaboration with Charles and the team at
Worldpay highlights the essence of a Leader’s Strategy partnership combining
visionary leadership with a transformational value creation plan while managing
the complexities of a corporate carve-out,” said Collin Roche, GTCR Co-CEO
and Managing Director.
“We are proud of the transformation that we
accomplished with Charles and team, reestablishing Worldpay as an innovative,
customer-centric, growth-focused independent company, and look forward to
staying closely involved as long-term strategic partners to the Worldpay and
Global Payments combined business.”
Shares of Global Payments fell over 17% following the
announcement, while FIS shares gained nearly 7%, Reuters reported. Despite the
stock drop, the deal values Worldpay at roughly 8.5 times earnings, including
$600 million in anticipated cost savings.
The sale also marks the final step in FIS’s gradual
retreat from its 2019 Worldpay acquisition, a $43 billion deal that failed to
deliver the expected synergies. Since then, FIS has seen its market
capitalization more than halve.
Private equity firm GTCR’s role in the transition
By offloading both the remaining Worldpay stake and
acquiring Global Payments’ issuer business, FIS now refocuses on its core
banking technology operations. Private equity firm GTCR played a key role in the
transition. In 2023, after acquiring a 55% stake in Worldpay from FIS, GTCR
partnered with CEO Charles Drucker to drive a turnaround.
The firm supported investments in fraud prevention,
technology upgrades, and new client acquisition. GTCR will receive a mix of 59% cash and 41% stock in
the deal and retain a 15% stake in the combined company.
The deal is expected
to close in the first half of 2026, pending regulatory approvals. The sale of
Worldpay and the issuer business are cross-conditioned, meaning both will
finalize simultaneously.
Global Payments is expanding into merchant services with
the acquisition of Worldpay for $24.25 billion. The move is part of a complex
three-way transaction involving private equity firm GTCR and former parent FIS.
According to the company’s announcement, the transaction combines two major players in digital payments and transforms Global Payments into a merchant-focused company. Worldpay brings a portfolio of enterprise and
e-commerce clients, complementing Global Payments’ focus on small and mid-sized businesses.
Targeting $3 Trillion Annually
Together, the companies will reportedly serve over six million
customers across 175 countries, handling 94 billion transactions totaling $3.7
trillion annually. With its $13.5 billion sale of the issuer solutions
division to FIS, Global Payments is seeking more expansion. This shift comes amid heightened competition from rivals such as
PayPal, Adyen, Stripe, Fiserv, and Block.
“Our collaboration with Charles and the team at
Worldpay highlights the essence of a Leader’s Strategy partnership combining
visionary leadership with a transformational value creation plan while managing
the complexities of a corporate carve-out,” said Collin Roche, GTCR Co-CEO
and Managing Director.
“We are proud of the transformation that we
accomplished with Charles and team, reestablishing Worldpay as an innovative,
customer-centric, growth-focused independent company, and look forward to
staying closely involved as long-term strategic partners to the Worldpay and
Global Payments combined business.”
Shares of Global Payments fell over 17% following the
announcement, while FIS shares gained nearly 7%, Reuters reported. Despite the
stock drop, the deal values Worldpay at roughly 8.5 times earnings, including
$600 million in anticipated cost savings.
The sale also marks the final step in FIS’s gradual
retreat from its 2019 Worldpay acquisition, a $43 billion deal that failed to
deliver the expected synergies. Since then, FIS has seen its market
capitalization more than halve.
Private equity firm GTCR’s role in the transition
By offloading both the remaining Worldpay stake and
acquiring Global Payments’ issuer business, FIS now refocuses on its core
banking technology operations. Private equity firm GTCR played a key role in the
transition. In 2023, after acquiring a 55% stake in Worldpay from FIS, GTCR
partnered with CEO Charles Drucker to drive a turnaround.
The firm supported investments in fraud prevention,
technology upgrades, and new client acquisition. GTCR will receive a mix of 59% cash and 41% stock in
the deal and retain a 15% stake in the combined company.
The deal is expected
to close in the first half of 2026, pending regulatory approvals. The sale of
Worldpay and the issuer business are cross-conditioned, meaning both will
finalize simultaneously.
