Summary:
- FIS acquires Global Payments' Issuer Solutions for $13.5 billion.
- FIS sells its Worldpay stake to Global Payments for $6.6 billion.
- Both transactions expected to close in the first half of 2026.
FIS (FIS, Financial), a global leader in financial technology, announced a strategic dual transaction involving the acquisition of Global Payments' (GPN) Issuer Solutions business for $13.5 billion and the sale of its 45% stake in Worldpay to Global Payments for $6.6 billion. This acquisition strengthens FIS's position as a major fintech player by incorporating over 40 billion annual transactions across 75 countries into its operations.
The Issuer Solutions acquisition is anticipated to yield revenue synergies exceeding $125 million annually and more than $150 million in EBITDA synergies by year three. This move is expected to be particularly accretive to FIS's Adjusted EBITDA margins, EPS, and free cash flow, with over $500 million in incremental adjusted free cash flow expected in the first 12 months.
The sale of the Worldpay stake is valued at a 10.5x multiple on projected 2025 EBITDA, surpassing the previous 9.8x valuation. The transactions collectively replace a non-cash generating minority interest with a high-margin recurring revenue business, expanding FIS's addressable market by $28 billion globally.
Financial preparations for the acquisition include an $8 billion addition to FIS's debt, leading to a temporary increase in gross leverage to 3.4x, with a targeted reduction to 2.8x within 18 months. Both transactions are expected to finalize in the first half of 2026, contingent on regulatory approvals and customary closing conditions.
Additionally, FIS reported strong preliminary Q1 2025 results, featuring a total revenue of $2.5 billion and an adjusted revenue growth of 4%. The company continues to reaffirm its full-year 2025 outlook, showcasing robust performance in its Banking and Capital Markets segments.
