FIS and WorldPay to offer ecommerce services to financial institutions and businesses
Fidelity Information Services (FIS), a Global financial services technology company, has entered an agreement to buy Worldpay, the global E-commerce and Payments Company. The $35 billion merger between FIS and WorldPay comes at a time when debts are being paid off through management programs and firms are trying to control expenses, build new products and expand their customer base. Moreover, the teaming up would not only expand FIS’s capabilities by enhancing payment offerings but also expand WorldPay’s distribution footprint which would accelerate its entrance into new regions. After the deal is closed, the combined company will offer enterprise banking, payments, capital markets, and global ecommerce services to financial institutions and businesses around the world.
Gary Norcross, Chairman, President, and CEO of FIS stated, “Scale matters in our rapidly changing industry.” Furthermore, he added “Upon closing later this year, our two powerhouse organizations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions. As a combined organization, we will bring the most modern solutions targeted at the highest growth markets. The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS.”
FIS boost its revenue growth
By merging with Worldpay, FIS will not only boost its revenue growth but also got an opportunity to increase its revenues from the merchant and banking industries. FIS’s prospects will be widened through Worldpay which processes more than 40 billion transactions each year and supports more than 300 payment types in more than 120 currencies. FIS also expects to gather $700 million of total Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) synergies which is its total earnings pro forma 2018 revenue and adjusted EBITDA of around $12.3 billion and $4.9 billion respectively. FIS would gain an organic revenue growth of between 6% and 9% through 2021.
Charles Drucker, Executive Chairman, and Chief Executive Officer of Worldpay stated “At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives. Combining with FIS helps us accelerate the achievement of that, now benefiting from new scale and capabilities that will truly differentiate the company globally”. Moreover, he added “We are proud to become part of one of the financial services industry’s most respected and consistently performing companies, and I am excited about the new opportunities this brings both for the business and our colleagues worldwide.”