US fintech giant Fidelity National Information Services (FIS) has agreed to acquire payment processor Worldpay for about $35 billion, according to a joint announcement on Monday.
The deal represents further consolidation in the financial technology sector. Earlier this year, Fiserv acquired payment processor First Data for $22 billion.
FIS shareholders will own approximately 53 percent of the combined company while Worldpay shareholders will own approximately 47 percent. Under the terms of the agreement, Worldpay shareholders will be entitled to receive 0.9287 FIS shares and $11.00 in cash for each share of Worldpay.
The combination of stock and cash values Worldpay at an enterprise value of approximately $43 billion.
— Worldpay Global (@Worldpay_Global) March 18, 2019
The merger is set to enhance FIS’s acquiring and payment offerings and boost Worldpay’s distribution footprint. According to a statement by Worldpay, the “combined company will be positioned to offer best-in-class enterprise banking, payments, capital markets, and global eCommerce capabilities empowering financial institutions and businesses worldwide.”
The combined company will have approximately $12.3 billion pro forma 2018 annual revenue.
“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.
“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.”
Charles Drucker, executive chairman and chief executive officer, Worldpay, commented:
“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.
“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.”