Fidelity buys Worldpay service for $35 bil

Payment processing company Worldpay is getting bought by US firm FIS in $43 billion deal

Fidelity National Information Services (FIS) has bought payment company Worldpay Inc. for approximately $34 billion in cash and stock, the biggest such deal in the worldwide payments sector, according to Bloomberg.

According to the broad terms of the deal, FIS will pay 0.9287 of a share and $11 in cash for every share of Worldpay.

The transaction is expected to expand FIS's capabilities by enhancing its payments offerings while increasing WP's distribution footprint and accelerating its entry into new geographies.

Shares in Worldpay, which has provided payment processing services for more than 40 years, were up 10.5 percent at $108.99 and Fidelity's shares were up 2.2 percent at $111.25 in premarket trading on Monday.

"A private equity consortium subsequently bought the business before floating it on the London Stock Exchange in 2015".

FIS has announced the acquisition of the British firm for more than $35 billion in a cash and stock deal.

The largest payments firms, such as Worldpay, Chase Paymentech and First Data Corp, each handle about US$1 trillion annually.

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The combined company will be based in Jacksonville, Florida, where FIS is headquartered. In January a year ago, US-based Fiserv Inc bought payment processor First Data Corp for $22 billion. The CEO of WorldPay, Charles Drucker, will be executive vice chairman.

The payments group announced today it is to merge with United States payments peer Fidelity National Information Service (FIS) just a year after completing a merger with Vantiv, another US-based payment group.

The Worldpay name will disappear through this latest deal, which will result in a company with sales of about US$12.3bn.

"Organisations of all types and sizes are looking for new ways to create more meaningful and frictionless experiences and grow their share of wallet through digital channels", the companies said.

"For FIS, buying Worldpay means expanding beyond the world of financial outsourcing and tapping into payment processing and e-commerce, the source said, adding that it was a "diversification play" giving FIS access to the high-growth payments sector".

FIS and Worldpay will have annual revenue of around $12bn with adjusted core earnings of around $5bn once the deal is completed following regulatory approval.

"Scale matters in our rapidly changing industry", said FIS Chief Executive Officer Gary Norcross, who will lead the combined group that will be a global powerhouse in providing the infrastructure for banking and payment systems.

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