FIS to buy Worldpay for $35B in cash and stock

 In News

FIS, a Jacksonville, Florida-based financial technology firm, has entered an agreement to buy Worldpay Inc. for $35 billion in stock and cash, creating one of the world’s largest payments firms.

According to a press release, the agreement will include the assumption by FIS of Worldpay debt, bringing the total enterprise value of the deal to $43 billion.

The combined company will have $12.3 billion in pro forma annual revenue in 2019 and $4.9 billion in adjusted EBITDA. Officials said the deal will result in $500 million in revenue synergies, $400 million in run-rate expense synergies and $4.5 billion in free cash flow in three years.

“Scale matters in our rapidly changing industry,” FIS CEO and chairman Gary Norcross said in the announcement. “Upon closing later this year, our two powerhouse organizations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.”

The combined firm will continue to operate under the FIS brand, with headquarters in Jacksonville. Norcross will remain as chairman, CEO and president of FIS; Charles Drucker, the current executive chairman and CEO of Worldpay, will become executive vice chairman of the board.

FIS will pay 0.9287 in FIS shares and $11 in cash for every share of Worldpay. FIS and Worldpay will own 53 percent and 47 percent, respectively, of the combined company.

The agreement follows the announcement in January of a blockbuster deal in which Fiserv agreed to buy First Data for $22 billion.

The FIS-Worldpay deal is expected to close by the second half of 2019.

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