FIS $35b bid for Worldpay approved by EU
(16 July 2019 - Europe) The European Union (EU) will approve the Fidelity National Information Services (FIS) US$35 billion dollar bid for global payments provider Worldpay with unconditional antitrust approval.
It is the largest recent payments provider merger amongst a series of smaller scale consolidation in the sector in recent years.
Headquartered in the United States, FIS creates banking and asset manager software as well as outsourcing financial services. Worldpay processes more than 40 billion transactions each year and supports more than 300 payment types in more than 120 currencies following a 2010 spin-off from the state owned Royal Bank of Scotland (RBS), which is a major card payments provider in the United Kingdom (UK).
Global digital payments could exceed US$3 trillion a year in revenue by 2023 as more businesses and consumers switch from cash to digital payments for online and in-store sales, according to McKinsey. FIS is executing the transaction with a combination of stock and cash that values Worldpay at US$43 billion, including the assumption of Worldpay, debt which FIS said it plans to refinance.
“Scale matters in our rapidly changing industry. Upon closing later this year, our two powerhouse organisations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions. As a combined organisation, we will bring the most modern solutions targeted at the highest growth markets. The long term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS” stated FIS Chairman, President and CEO Gary Norcross.
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