Global Payments' Strategic Move: Acquiring Worldpay and Divesting Issuer Solutions

Global Payments, a leading player in the payments industry, has announced a significant strategic shift with its plan to acquire Worldpay for $22.7 billion. Simultaneously, the company will divest its Issuer Solutions business to FIS for $13.5 billion. This strategic maneuver is designed to solidify Global Payments' position as a premier global commerce solutions provider.

Expanding Capabilities and Market Presence

The acquisition of Worldpay marks a pivotal moment for Global Payments, dramatically expanding its capabilities across the entire merchant spectrum. This includes supporting small businesses to large enterprises and bolstering its foothold in high-growth verticals like ecommerce and integrated payments. With over 6 million customers and a staggering annualized transaction volume of $3.7 trillion across 175 countries, the combined entity will become a formidable force in the payments industry, boasting one of the most extensive global footprints.

Enhancing Embedded and Integrated Payments

A critical component of the acquisition is the enhancement of Global Payments' ability to deliver embedded and integrated payments. The addition of Worldpay's Payrix offering is key to achieving this goal, allowing Global Payments to provide more robust solutions to platform partners. The strategic acquisition not only broadens the company's service offerings but also positions it to better serve an increasingly digital and integrated payments environment.

Streamlining Operations Through Divestment

In parallel with the acquisition, Global Payments' decision to divest its Issuer Solutions business is a calculated move to streamline operations. This divestment allows the company to focus on its core acquiring and software capabilities, ensuring that its resources and efforts are concentrated on areas with the most growth potential. The sale to FIS also forges a new commercial alliance between the two companies, expanding their collaboration on a variety of financial technology offerings, including embedded commerce, risk and fraud, and issuer processing.

Financial Projections and Synergies

The financial profile underpinning this strategic shift is compelling. By 2025, the newly combined company is projected to generate $12.5 billion in adjusted net revenue and $6.5 billion in EBITDA on a pro forma basis. Global Payments anticipates realizing $600 million in annual cost synergies within three years post-closing, along with at least $200 million in incremental revenues. These financial benefits will be driven by a broader product suite, accelerated innovation, and enhanced global distribution.

To fund the acquisition, Global Payments will utilize proceeds from the Issuer Solutions sale, cash on hand, and $7.7 billion in newly issued debt. GTCR, a significant stakeholder, will receive Global Payments stock valued at $97 per share, representing around 15% of the company's pro forma equity.

A New Benchmark in Digital Payments

Pending regulatory approval, both transactions are expected to close in the first half of 2026. For Global Payments, this deal represents a significant strategic repositioning, establishing the company as a global powerhouse in merchant services, software, and commerce enablement. This move sets a new benchmark in the rapidly evolving landscape of digital payments, aligning with Global Payments' vision to lead in the global commerce solutions market.

In conclusion, the acquisition of Worldpay and the divestment of Issuer Solutions exemplify Global Payments' commitment to strengthening its market position and enhancing its service offerings. By focusing on core capabilities and expanding its global reach, Global Payments is poised to drive significant growth and innovation in the digital payments industry.