Acquisitions & Mergers

Worldpay is sold by FIS to GTCR for $18.5b.

By Admin - 18 Jan 2024 03:37 PM

In one of the biggest corporate carve-outs in history, US financial technology company Fidelity National Information Services has agreed to sell private equity firm GTCR the bulk of its merchant payments division, Worldpay. The transaction is valued at up to $18.5 billion.

After telling investors in February that it intended to spin off the unit to stockholders, FIS changed its strategy and would now maintain a 45% ownership in Worldpay in addition to receiving net proceeds of $11.7 billion. The Florida-based business announced on Thursday that it will use the money to finance share buybacks and debt repayment.

The Chicago-based GTCR is expected to invest over $5 billion in Worldpay, with a valuation of approximately $4.5 billion for FIS's 45 percent equity stake, as per individuals acquainted with the situation.

According to people familiar with the situation, a syndicate of lenders led by Goldman and JPMorgan will raise $8.4 billion in debt to finance the private equity firm's acquisition. UBS, Deutsche Bank, Citigroup, and Wells Fargo are also involved in the funding.

Chief executive Stephanie Ferris stated in a statement, "This transaction provides certainty for all stakeholders and allows FIS to partially monetarilyze our merchant solutions business at an attractive valuation."

GTCR has a history of investing in the payments industry; in 2010, it even sold a company to Worldpay for a price over $1 billion. According to those with knowledge of the situation, Thursday's transaction is the biggest in the company's history.