Global Payments is expanding into merchant services with the acquisition of Worldpay for $24.25 billion. The move is part of a complex three-way transaction involving private equity firm GTCR and former parent FIS.

The transaction combines two major players in digital payments and transforms Global Payments into a pure merchant-focused company. Worldpay brings a strong portfolio of enterprise and e-commerce clients, complementing Global Payments' existing strength among small and mid-sized businesses.

Targeting $3 Trillion Annually

Together, the companies will serve over six million customers across 175 countries, handling 94 billion transactions totaling $3.7 trillion annually. With its $13.5 billion sale of the issuer solutions division to FIS, Global Payments has streamlined its operations and sharpened its focus. This shift comes amid heightened competition from rivals such as PayPal, Adyen, Stripe, Fiserv, and Block.

Shares of Global Payments fell over 17% following the announcement, while FIS shares gained nearly 7%, Reuters reported. Despite the stock drop, the deal values Worldpay at roughly 8.5 times earnings, including $600 million in anticipated cost savings.

The sale also marks the final step in FIS’s gradual retreat from its 2019 Worldpay acquisition, a $43 billion deal that failed to deliver the expected synergies. Since then, FIS has seen its market capitalization more than halve.

Private equity firm GTCR’s role in the transition

By offloading both the remaining Worldpay stake and acquiring Global Payments’ issuer business, FIS now refocuses on its core banking technology operations. Private equity firm GTCR played a key role in the transition. In 2023, after acquiring a 55% stake in Worldpay from FIS, GTCR partnered with CEO Charles Drucker to drive a turnaround.

The firm supported investments in fraud prevention, technology upgrades, and new client acquisition. GTCR will receive a mix of 59% cash and 41% stock in the deal and retain a 15% stake in the combined company.

The deal is expected to close in the first half of 2026, pending regulatory approvals. The sale of Worldpay and the issuer business are cross-conditioned, meaning both will finalize simultaneously.

Source: Finance Magnates