Gary Norcross, Chairman, President and CEO, FIS

US-based Financial services provider FIS and Worldpay, a provider of eCommerce and payments solutions, have entered into a definitive merger agreement.

According to the supplier, the merger will facilitate the expansion of  FIS’ capabilities as it is expected to enhance its acquiring and payment offerings and increase Worldpay’s distribution footprint, accelerating its entry into new geographies. Clients are expected to benefit from both of the companies’ complementary services including the combined omnichannel payment and multi-currency capabilities, robust risk and fraud solutions and data analytics. The merger will also provide the clients of both organizations access to a wider portfolio of digital assets to accelerate their revenue growth and streamline their operations.

“Scale matters in our rapidly changing industry,” stated Gary Norcross, chairman, president and chief executive officer, FIS. “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.”

Worldpay currently stands at a valuation of $43 billion which FIS expects to refinance. Upon closing, FIS and Worldpay will retain 53% and 47% respectively of the combined company.

“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. Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally,” said Charles Drucker, executive chairman and chief executive officer, Worldpay. “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.”

Additionally, the supplier states that the combination of both companies will have an enhanced financial profile, since the combined company will have pro forma 2018 annual revenue and adjusted EBITDA of approximately $12.3 billion and $4.9 billion, respectively.

This follows the merger of the US fintechs Fiserv and First Data, both with a common goal of enhancing their payment structures and client base.

by Megha Bhattacharya
Market Analyst at IBS Intelligence
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