FIS has reached a definitive agreement with private equity firm GTCR to sell a majority stake in its Worldpay merchant business. GTCR will acquire 55% of Worldpay for $18.5 billion, with FIS receiving $11.7 billion in upfront net proceeds. FIS will retain a 45% ownership interest. The deal aims to simplify operations, provide capital allocation flexibility for FIS, and allow Worldpay to pursue inorganic growth opportunities.
Facts
- FIS signs agreement with GTCR to sell majority stake in Worldpay merchant business.
- GTCR to acquire 55% of Worldpay for $18.5 billion, with FIS receiving $11.7 billion upfront.
- FIS retains 45% ownership interest in Worldpay.
- Deal aims to simplify operations and create greater management focus for FIS and Worldpay.
- Upfront cash provides capital allocation flexibility for FIS, allowing debt payment and additional capital return to shareholders.
- GTCR commits up to $1.25 billion in equity capital for Worldpay’s inorganic growth opportunities.
- Transaction expected to close by Q1 2024, subject to regulatory approvals and customary closing conditions.
