Fidelity National Sells 55% Stake In Worldpay To GTCR For $11.7B Net Proceeds; Retains 45% Stake

Fidelity National Information Services, Inc. FIS signed a definitive agreement to sell a majority stake in its Worldpay Merchant Solutions business to private equity funds managed by GTCR.

GTCR will acquire 55% of Worldpay, and FIS will retain the remaining 45% in a transaction that values the business at $18.5 billion. 

Worldpay is a provider of payment processing solutions with $2 trillion in payments volume in 2022.

Under the deal, GTCR has committed an additional equity capital investment of up to $1.25 billion in Worldpay to pursue inorganic growth opportunities. 

The latest development marks Fidelity National's acceleration of its previously announced separation plan to create two highly focused global companies with greater strategic flexibility. 

Also Read: Morgan Stanley Analyst Sees Long-term Growth Opportunities in Undervalued FIS Stock

FIS will receive upfront net proceeds of approximately $11.7 billion while retaining a non-controlling 45% ownership interest in a new standalone joint venture.

"This transaction allows FIS to partially monetize our Merchant Solutions business at an attractive valuation and provides certainty for all stakeholders," said FIS CEO and President Stephanie Ferris.

The transaction will close by Q1 2024, subject to regulatory approvals.

Upon closing the transaction, Charles Drucker will serve as CEO of Worldpay.

Preview of Q2 2023 Results: Previewing its second quarter results, FIS expects to be above the mid-point of its revenue guidance of $3.675 billion - $3.725 billion (consensus $3.71 billion) and adjusted earnings per share of $1.45 - $1.50 (consensus $1.48).

Price Action: FIS shares are trading higher by 1.52% to $60.71 in the premarket session on the last check Thursday.