In a stunning move set to reshape the global payments landscape, financial technology giant FIS has announced its plan to divest a majority stake in its highly successful Worldpay merchant solutions business. The decision comes as part of FIS' strategic vision to unlock new growth opportunities and enhance its focus on cutting-edge financial technology innovations.
The Florida-based powerhouse has secured an impressive deal with American private equity firm GTCR, valuing Worldpay at a staggering $18.5 billion. GTCR will assume majority ownership, while FIS will retain a substantial 45% stake in the newly formed entity, showcasing its unwavering commitment to the venture's continued success.
The excitement surrounding the deal is palpable, with GTCR committing an additional $1.25 billion investment to propel Worldpay's growth and solidify its position as a global leader in commerce solutions. Renowned industry expert Charles Drucker will spearhead the newly spun-off business, bringing his wealth of experience to drive innovation, foster strategic partnerships, and secure Worldpay's dominance in the rapidly evolving payments sphere.
Worldpay, boasting a colossal $2 trillion in payments volume last year, is widely regarded as one of the largest merchant acquirers worldwide. Its pivotal role in facilitating seamless transactions between customers and merchants has propelled its success and earned the trust of countless businesses of all sizes.
The decision to divest Worldpay was not taken lightly, as FIS acknowledged the unit's remarkable performance. With revenues of $4.77 billion in the previous fiscal year, the merchant solutions business was FIS' fastest-growing revenue segment. However, this strategic move will enable FIS to focus its attention on driving innovation and expansion in other key areas, fortifying its position as a trailblazer in the fintech industry.
FIS CEO and President Stephanie Ferris expressed her enthusiasm, stating, "This transaction allows FIS to partially monetize our merchant solutions business at an attractive valuation and provides certainty for all stakeholders. It also allows us to simplify and drive greater focus on delivering innovative, next-generation financial technology and software solutions."
Amidst the transformation, FIS has ensured a seamless transition for its valued merchant clients. The company will establish various commercial arrangements with the newly formed Worldpay business, ensuring uninterrupted access to FIS products and services while minimizing any potential disruption.
As the news reverberates throughout the industry, the visionary Charles Drucker, incoming Worldpay CEO, shared his excitement, remarking, "This new separation path positions Worldpay for immediate success, combining the benefits of a well-established global brand and group of talented payments professionals with the energy of an independent startup, all backed by a world-class private equity firm. I'm excited to be working with my former colleagues and GTCR to win in the marketplace and position Worldpay for long-term success."
Collin Roche, Co-CEO and Managing Director at GTCR, echoed the sentiments, expressing delight at the opportunity to work with Drucker and the Worldpay leadership team. Roche emphasized GTCR's commitment to investing in the payments sector, highlighting their confidence in Worldpay's sustained, long-term growth and their dedication to advancing its leadership position across various channels and geographies.
With the stage set for a revolutionary leap forward in the payments industry, the FIS-GTCR partnership promises to reshape the landscape, fueling innovation, and empowering businesses worldwide to thrive in an increasingly digital and interconnected economy.