In the largest deal to date in the quickly growing electronic payments industry, Fidelity National Information Services (FIS) has announced that it will acquire Worldpay for around $35bn.
While other industries have grown increasingly concerned about trade tensions and a global economic slowdown, the financial technology sector is consolidating at a rapid rate with McKinsey predicting that global payments will reach $3tn a year in revenue by 2023.
FIS' announcement that it will acquire Worldpay comes a little more than a year after the US firm Vantiv paid over $10bn for the payments company that was created in Britain and spun off from the Royal Bank of Scotland in 2010.
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FIS and Worldpay will have annual revenue of around $12bn with adjusted core earnings of around $5bn once the deal is completed following regulatory approval.
Worldpay acquisition
Worldpay has a considerable presence in the UK and is a major player in the card payments sector while FIS creates software for banks and asset managers.
Both companies said the deal would lead to an organic revenue growth outlook of six to nine percent through 2021.
FIS Chief Executive Officer Gary Norcross explained that the Worldpay acquisition would benefit both companies and their shareholders in a statement announcing the deal, saying:
“Scale matters in our rapidly changing industry. 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. As a combined organization, 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.”
Via Reuters
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