FIS - GTCR to acquire majority stake in Worldpay at $18.5B valuation

2023-07-06 07:30:45 ET

Private equity from GTCR agreed to purchase a majority stake in Fidelity National Information Services' ( NYSE: FIS ) Worldpay business at a valuation of $18.5 billion.

FIS will receive upfront, net proceeds of approximately $11.7 billion while retaining a non-controlling 45% ownership interest in a new standalone joint venture, according to a statement on Thursday. As part of the agreement, GTCR has committed an additional equity capital investment in Worldpay of up to $1.25 billion to pursue inorganic growth opportunities.

FIS will use proceeds from the sale to pay down debt and return additional capital to shareholders through its existing share repurchase program, as well as for general corporate purposes.

The deal is expected to close by Q1 2024. Following the close of the transaction, FIS' ownership interest in Worldplay will be reported as income from minority interests. Separately, FIS said Thursday it expects to be above the "mid-point" of its guidance for revenue, adjusted EBITDA, and adjusted earnings per share for its Q2 results.

The news confirms reports starting Friday that FIS was in talks to sell a majority stake in Worldpay. FIS shares gained 6% on Monday amid the reports.

The Worldplay sale follows Fidelity National's ( FIS ) announcement in February that it planned to spin off its Merchant Solutions business , known as Worldpay. Fidelity National purchased Worldpay for about $35 billion in 2019.

Goldman Sachs and JPMorgan served as co-lead financial advisors to FIS. Centerview also served as a financial advisor to FIS.

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