Global payments service provider FIS has signed a definitive agreement to sell a majority stake in its Worldpay Merchant Solutions business to private equity firm GTCR. The transaction is expected to close by Q1 2024 and is pending regulatory approvals.

GTCR will acquire 55% of Worldpay for approximately US$11.7 billion and FIS will retain the remaining 45%, valuing the business at US$18.5 billion. Charles Drucker will become CEO of Worldpay upon close of the transaction.

As part of the agreement, GTCR has also committed an additional equity capital investment in Worldpay of up to US$1.25 billion to pursue inorganic growth opportunities.

GTCR said that Worldpay will be able to increase its investment in product development and technology, enter new end markets, expand its geographic footprint and invest in key growth areas as a new standalone joint venture.

The company, in partnership with GTCR, will also pursue strategic M&A opportunities across verticals and geographies, to augment Worldpay’s capabilities and expand its market opportunity.

Charles Drucker, incoming Worldpay’s CEO said,

“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.

With the support of GTCR’s resources and expertise, and continuing to partner with FIS, I believe that Worldpay will create and define the future of merchant payment solutions.”

Collin Roche, Co-CEO and Managing Director at GTCR said,

“We are thrilled to be working with Charles and the Worldpay leadership team to build on the company’s culture of innovation, invest in new capabilities and advance its leadership position across channels and geographies.

As a firm, we have a long history of investing in the payments sector, and that experience provides us with tremendous confidence in the opportunity for sustained, long-term growth at Worldpay.”

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• Source: https://fintechnews.sg/76127/payments/fis-sells-55-stake-in-worldpay-to-gtcr-in-us11-7-billion-deal/