Global Payments to Acquire Worldpay in $22.7bn Fintech Deal
Global Payments Inc., a payments technology provider, has announced agreements to acquire Worldpay from GTCR and FIS for a net purchase price of US$22.7bn, while simultaneously divesting its Issuer Solutions business to FIS for US$13.5bn.
The transaction positions Global Payments as a merchant solutions provider with a simplified business model.
The company will serve approximately six million customers globally, process 94 billion transactions and handle US$3.7tn in payment volume across more than 175 countries.
The net purchase price for Worldpay reflects a total value of US$24.25bn, including US$1.55bn of anticipated tax assets.
This represents an 8.5x adjusted EBITDA multiple for Worldpay on a net basis, inclusive of run-rate synergies, while the sale of Issuer Solutions reflects a 12.3x adjusted EBITDA multiple.
“Today marks a defining day for Global Payments and a pivotal milestone in our journey to become the worldwide partner of choice for commerce solutions,” says Cameron Bready, CEO at Global Payments.
“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.”
Strategic rationale
The transaction brings together Global Payments' merchant solutions focused on small and medium businesses (SMB) with Worldpay's capabilities for ecommerce and enterprise clients.
Worldpay offers payment processing services that enable merchants to accept card payments online, in-person and via mobile devices.
The merger diversifies Global Payments' business mix, particularly strengthening its ecommerce capabilities and expanding its integrated and embedded payment offerings for software platforms.
Integrated payments enable software providers to embed payment processing directly within their applications, while embedded finance refers to non-financial companies integrating financial services into their products.
Worldpay's Payrix solution, a platform that helps software companies monetise payments, will complement Global Payments' existing offerings in this segment.
Charles Drucker, CEO at Worldpay, adds: “We are excited to enter this next phase of Worldpay's evolution by uniting with Global Payments to create something special in the payments industry. Our solutions will enhance value for our customers, especially for Worldpay's small and medium-sized businesses.”
Financial impact
The combined entity expects to achieve pro forma 2025 annual adjusted net revenue of approximately US$12.5bn and adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of US$6.5bn, inclusive of run-rate expense synergies.
Global Payments anticipates cost synergies of approximately US$600m annually over three years post-closing, primarily through combining business operations, technology infrastructure and scale efficiencies.
Revenue synergies of at least US$200m are expected over the same timeframe as the company capitalises on cross-selling opportunities.
The transaction is expected to be modestly accretive to earnings in the first year following completion, and mid to high single-digit accretive thereafter.
Accretion refers to an increase in a company's earnings per share resulting from an acquisition.
Global Payments plans to maintain its investment-grade credit ratings and expects net leverage of approximately 3.5x at closing, with plans to reduce this to 3.0x within 18 to 24 months. Leverage refers to the ratio of debt to earnings or cash flow.
Transaction details
The acquisition of Worldpay will be financed through a combination of cash proceeds from the sale of Issuer Solutions, existing cash on the balance sheet, and US$7.7bn in new debt.
GTCR, a private equity firm, will receive shares in Global Payments at a price of US$97.00, representing approximately 15% of Global Payments' outstanding shares on a pro forma basis.
The transactions require regulatory approvals and are expected to close in the first half of 2026.
Global Payments and FIS will establish a commercial relationship to offer solutions including core banking, treasury management, embedded commerce, issuer processing, risk and fraud and merchant solutions to partners globally.
In its preliminary first quarter 2025 results, Global Payments reported total adjusted net revenue of US$2.2bn, representing constant currency growth of over 5%, excluding dispositions.
“Global Payments and Worldpay bring together complementary capabilities and distribution networks, creating opportunities for the combined business to accelerate growth, amplify investment in innovation and elevate client and partner experiences with solutions,” Cameron concludes.
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