Many deals are taking place in a wave of consolidation in the financial software and payments technology sectors. In the biggest deal to date in the booming payments industry, U.S. fintech group Fidelity National Information Services (FIS) recently announced that it had agreed to buy payment processor Worldpay for $35 billion.
Firms are busy trying to “bulk up” in an effort to compete with talented newcomers. These start-ups are full of ideas on how to disrupt the way merchants are paid. U.S.-based company, Fiserv, recently bought payment processor First Data in January for $22 billion. Yet another example of big firms consolidating to remain competitive.
The Offer for Worldpay
Back in 2017, FIS brought an offer to the table for Worldpay, which was bought by U.S. credit card company Vantiv for $10.63 billion. This offer values Worldpay at around $43 billion, including debt. After this announcement, Worldpay’s London listed shared had jumped 9.4 percent at 8,104 pence.
In a statement, FIS Chief Executive Officer Gary Norcross commented, “Scale matters in our rapidly changing industry.”
According to reports, Worldpay shareholders will receive 0.92787 FIS shares and $11 in cash for each share held, valuing the company at $112.12 per share. The companies also said that the combined entity will have revenue of about $12 billion. FIS shareholders will own about 53 percent upon closing, while Worldpay shareholders will own about 47 percent of the combined company.
What is Worldpay?
For more than 40 years, Worldpay has provided payment processing services for small and large businesses. It has operated as a business unit of Fifth Third Bancorp up until June 2009 when it separated as a stand-alone company. The company then listed on the London Stock Exchange in 2015 with an initial public offering, valuing it at 4.8 billion pounds – the biggest flotation in London that year.
Worldpay has become a global leader in payments processing technology and solutions for its merchant customers and is known for simplifying payments by helping businesses work through obstacles so they can grow.
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Author Bio:Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and resources (like Worldpay phone number) has helped thousands of business owners save money and time.