Global Payments, a company offering payment technology and software services across international markets, has announced definitive agreements to acquire Worldpay for a net purchase price of $22.7 billion and divest its Issuer Solutions business to FIS for $13.5 billion. The acquisition values Worldpay at $24.25 billion, including $1.55 billion in anticipated tax assets, and reflects an adjusted EBITDA multiple of 8.5x. The divestiture of Issuer Solutions is based on a 12.3x EBITDA multiple. The transaction positions Global Payments as a focused merchant solutions provider, serving more than 6 million customers across more than 175 countries and enabling approximately 94 billion transactions annually. The combined entity will have a strong presence across all merchant sizes and key geographic markets.
According to Cameron Bready, Chief Executive Officer, “The acquisition of Worldpay and divestiture of Issuer Solutions further sharpen our strategic focus and simplify Global Payments as a pure play merchant solutions business with significantly expanded capabilities, extensive scale, greater market access, and an enhanced financial profile.” The company plans to finance the acquisition with proceeds from the Issuer Solutions sale, balance sheet cash, and new debt. Charles Drucker, Chief Executive Officer at Worldpay, stated, "Our solutions will enhance value for our customers, especially for Worldpay’s small and medium-sized businesses. The combination of Global Payments and Worldpay brings together two strong teams with similar histories, a shared culture of innovation and deep payments expertise.”
