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Worldpay and FIS Deals Shake up Merchant Services in Echo of 2019’s Payments Megamergers
- In the FinTech space, 2025 is reminiscent of 2019 with a focus on embedded payments in eCommerce and enterprise models.
- Global Payments acquisitions of Worldpay and its divestiture of the issuer solutions unit to FIS signal a shift towards being a commerce solutions company.
- The combined net purchase price for Worldpay is $22.7 billion, and the sale of the issuer business amounts to $13.5 billion.
- The deals mirror the megamergers of 2019, with Global Payments, FIS, and Fiserv making significant moves in the payment industry.
- Purchase prices for Worldpay and issuer solutions segment equate to 8.5x and 12.3x EBITDA, respectively, showing slower growth than the tech sector average.
- The transactions aim to enhance credit processing capabilities, strengthen payments offerings, and expand integrated and embedded payment services.
- The deals are expected to bring together 6 million customers, 94 billion transactions, and $3.7 trillion in volume across 175 countries.
- Global Payments CEO highlighted the strategic benefits of the deal, positioning the combined entity for growth in digital payments.
- Worldpay processes over 55 billion transactions annually, offers various payment solutions, and enhances Global Payments' capabilities in eCommerce and enterprise.
- The collaboration aims to focus on core banking, treasury management, embedded finance, and issuer processing to serve a broader spectrum of merchants.
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