Financial services technology provider FIS has reached a merger agreement with Worldpay, Inc., a leader in eCommerce and payments, the companies announced.
The deal would give FIS majority control of the company. Reuters reported the total of cash and stock to acquire Worldpay would be about $34 billion, making it the largest acquisition in the payments sector.
The deal enhances FIS’ acquiring and payment offerings and significantly increases Worldpay’s distribution footprint. The deal is expected to close during the second half of 2019.
FIS was bought by Fidelity National Financial (FNF) in 2003 and was spun off from the company in 2004. One of FIS’ divisions was Lender Processing Services, which was spun off from FIS in 2008. FNF bought back LPS in 2014 and renamed it Black Knight.
“Scale matters in our rapidly changing industry,” FIS Chairman, President and CEO Gary Norcross said in a release. “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,” Norcross added. “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.”
According to the agreement, Worldpay shareholders will receive 0.9287 FIS shares and $11 in cash for each share of Worldpay upon closing. FIS shareholders will own approximately 53 percent and Worldpay
shareholders will own approximately 47 percent of the combined company.
Norcross will remain chairman of the board of directors, president and CEO. Worldpay Executive Chairman and CEO Charles Drucker will become executive vice chairman of the board of directors of the merged company, which will have approximately $12.3 billion pro forma 2018 annual revenue.
“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives,” Drucker said. “Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally.
“We are proud to become part of one of the financial services industry’s most respected and consistently performing companies, and I am excited about the new opportunities this brings both for the business and our colleagues worldwide,” Drucker said.