Global Payments announced a landmark $24.25 billion acquisition of Worldpay on April 17, 2025, alongside divesting its Issuer Solutions business to FIS for $13.5 billion. The strategic move to enhance merchant commerce capabilities triggered an immediate 17% drop in the company’s stock price, reflecting significant investor concerns over integration risks and transaction scale.

The transformative deal positions Global Payments as a focused, pure-play payment technology provider by divesting its Issuer Solutions segment and acquiring Worldpay. It allows the company to concentrate entirely on merchant acquiring, payment processing, and commerce-enablement technologies, simplifying its business model and enhancing its ability to innovate.

The acquisition of Worldpay, valued at $24.25 billion including $1.55 billion in anticipated tax assets, strengthens Global Payments’ capabilities in e-commerce and enterprise-grade payment infrastructure. Worldpay’s expertise complements Global Payments’ core focus on small and medium-sized businesses, enabling the company to serve more than 6 million customers across more than 175 countries, representing $3.7 trillion in annual payment volume.

The sale of the Issuer Solutions segment to FIS allows Global Payments to focus more on its core merchant services while providing FIS with enhanced capabilities in issuer processing.

Market response has been notably negative, with Global Payments shares plummeting to a low amid broader shifts in payment processing stocks. The company’s stock has faced significant challenges over the past year, declining more as regulatory pressures and evolving consumer payment trends impact the sector.

This strategic transaction follows GTCR’s 2023 acquisition of a 55% stake in Worldpay from FIS, which now pivots to acquire Global Payments’ Issuer Solutions business. The three-way deal reshapes the competitive landscape in payments, merging Global Payments’ merchant-focused technology with Worldpay’s ecommerce and enterprise capabilities.

Industry analysts emphasise that the acquisition significantly diversifies Global Payments’ market presence while enhancing its integrated payment solutions. The expanded customer base, particularly Worldpay’s established merchant clientele, creates substantial opportunities for cross-selling and increased penetration in small and medium business segments.

Looking ahead, the deal’s success will depend on effective integration and realisation of projected synergies to restore investor confidence. As the payment industry continues evolving amid technological advancement and regulatory scrutiny, strategic scale and innovation remain crucial for maintaining a competitive advantage.

News Source: https://www.cnbc.com/2025/04/17/global-payments-shares-plunge-17percent-on-24-billion-worldpay-deal.html