FIS sells Worldpay to GTCR at $18.5b valuation

By Delisha Fernandes

FIS, a global financial services technology, announced it has signed an agreement to sell a majority stake in its Worldpay Merchant Solutions business to private equity funds managed by GTCR in a transaction valuing Worldpay at $18.5 billion.

The agreement will enable greater management focus and operational simplification for FIS and Worldpay. In addition, the upfront cash proceeds will create immediate capital allocation flexibility.

“This transaction allows FIS to monetise our Merchant Solutions business at an attractive valuation partially and provides certainty for all stakeholders,” said Stephanie Ferris, CEO and President FIS. “It also allows us to simplify and drive greater focus on delivering innovative, next-generation financial technology and software solutions. At the same time, Worldpay will become a privately held company and benefit from the resources and expertise of GTCR.”

As part of the agreement, GTCR has committed an additional equity capital investment in Worldpay of up to $1.25 billion to pursue inorganic growth opportunities. FIS will use proceeds from the sale to pay down debt and return additional capital to shareholders through its existing share repurchase authorisation and for general corporate purposes while maintaining a strong investment-grade credit rating.

Collin Roche, Co-CEO and Managing Director at GTCR, said, “We are thrilled to be working with Charles and the Worldpay leadership team to build on the company’s culture of innovation, invest in new capabilities and advance its leadership position across channels and geographies. As a firm, we have a long history of investing in the payments sector, and that experience provides us with tremendous confidence in the opportunity for sustained, long-term growth at Worldpay.”

FIS will remain a provider of financial technology solutions for financial institutions, capital markets firms, corporates and developers globally.