In a significant market development on April 17, 2025, Global Payments Inc. unveiled a transformative $24.25 billion acquisition of Worldpay, while simultaneously announcing the sale of its Issuer Solutions business to FIS for $13.5 billion. The announcement triggered an immediate 17% decline in Global Payments’ stock value.

The strategic merger positions Global Payments as a leading pure-play commerce solutions provider globally, marking a pivotal shift in the payments technology landscape. The company’s decision to divest its credit processing segment while acquiring Worldpay demonstrates a calculated move to streamline operations and enhance its merchant-focused services portfolio.

The complex transaction structure involves GTCR, Worldpay’s majority stakeholder, receiving 59% cash and 41% Global Payments stock, maintaining a 15% ownership in the merged entity. FIS will receive $6.6 billion in pre-tax value for its Worldpay stake while gaining the stable revenue stream of the Issuer Solutions business.

Financial projections for the combined entity are substantial, with expected adjusted net revenue of $12.5 billion and adjusted EBITDA of $6.5 billion. The merger aims to process $3.7 trillion in global payments annually, with anticipated cost synergies of $600 million and revenue synergies exceeding $200 million.

The sharp decline in Global Payments’ share price reflects market concerns about the transaction’s complexity and integration challenges. Analysts highlight the risks associated with merging large-scale payment platforms while divesting profitable business segments in an increasingly competitive fintech environment.

For FIS, the acquisition of Issuer Solutions represents a strategic expansion of its fintech capabilities. The company projects over $125 million in annual revenue synergies and $150 million in net EBITDA synergies by the third year, with positive impacts on margins and earnings expected within the first year.

The merger signifies a strategic realignment in the payments industry, creating a formidable competitor in global payment processing. Both companies have maintained their 2025 financial outlooks and pledged transparent communication with investors throughout the integration process.

Source: CNBC