Daily Management Review

Fidelity National buys Worldpay for $ 43 bln


American financial company Fidelity National Information Services (FIS) reached an agreement to buy the British payment operator Worldpay for $ 43 billion. For Worldpay itself, this will be the second change of ownership in the past year and a half.

Fidelity National buys Worldpay for $ 43 bln
American fintech company Fidelity National Information Services may become the new owner of Worldpay. On Monday, the parties announced an agreement on the terms of the merger. Worldpay shareholders will receive 0.9287 FIS shares and $ 11 in cash for each share of the British company they currently own. The total amount of the transaction, taking into account debts of the payment company, will be $ 43 billion (£ 32.5 billion).

After the merger, FIS shareholders will own 53% of the share capital of the combined company.

Worldpay was originally a division of the Scottish bank RBS, but during the global financial crisis, the bank was forced to ask the authorities for salvation. Under the terms of state aid, RBS should have sold this business. As a result, it went to Advent International and Bain Capital for approximately £ 2 billion. In mid-2017, Worldpay received a new owner when one of the largest US companies processing transactions with Vantiv credit cards bought the payment operator. Then, the amount of the transaction amounted to £ 9.3 billion.

Thus, the value of the company has increased by more than 16 times for eight and a half years.

The companies expect that the revenue of the combined structure will reach approximately $ 12.3 billion, based on the financial performance of Worldpay and FIS in 2018. The current CEO of FIS, Gary Norcross, will become the CEO and chairman of the board of the merged company, and Charles Drucker, who currently heads Worldpay, will assume the position of vice chairman of the board of directors. Worldpay headquarters will now be located in Jacksonville, Florida.

source: bloomberg.com