Financial services provider Fidelity National Information Services (FIS) announces merger with Worldpay in $43 billion deal.
Financial services provider Fidelity National Information Services and payment processing firm Worldpay are to merge in a mammoth $43bn deal.
Combined, the two companies generate around $12.3 bn in pro forma revenue for 2018, and estimates suggest almost a billion dollars of synergies could be created by the merger. It is also expected to accelerate FIS’ organic growth outlook to between 6% and 9% through to 2021.
The deal is still subject to shareholder and regulatory scrutiny and approval, but is expected to be completed sometime in the second-half of 2019. The new board will have seven directors from FIS and five from Worldpay.
The new giant formed by the merger will be called FIS and based in Jacksonville, Florida. Current FIS Chairman, President and CEO, Gary Norcross will retain his position in the merged company, while Worldpay Executive Chairman and CEO, Charles Drucker, will be Vice Chairman.
Discussing the deal, Norcross said:
“Scale matters in our rapidly changing industry. Upon closing later this year, our two powerhouse organisations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.”
“As a combined organization, we will bring the most modern solutions targeted at the highest growth markets. The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS.”
While Drucker added:
“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives. Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally,
“We are proud to become part of one of the financial services industry’s most respected and consistently performing companies; I am excited about the new opportunities this brings both for the business and our colleagues worldwide.”
Worldpay, which was acquired by Vantiv in January of 2018, is heavily used by the online gaming industry.
AYO.NEWS says:
The payments sector is changing at a blistering speed, with new products and services popping up daily – much of it driven by blockchain innovation and adoption. Undoubtably, this merger really will create a financial services superpower, and hopefully deliver reduced costs to clients worldwide.
