Almost four years after buying Worldpay Inc. in a $43 billion deal, Fidelity National Information Services Inc. announced an $11.7 billion deal to sell a controlling interest in it.
Jacksonville-based FIS said July 6 that Chicago-based private equity firm GTCR will pay $11.7 billion to acquire 55% of Worldpay.
FIS will retain the other 45% interest in the merchant payments technology company.
Worldpay has produced disappointing results since FIS acquired it in 2019, and FIS announced plans in February to spin off the business as a separate public company.
However, several reports from financial news outlets over the past week said private equity firms were interested in buying it.
“This transaction allows FIS to partially monetize our Merchant Solutions business at an attractive valuation and provides certainty for all stakeholders,” FIS Chief Executive President Stephanie Ferris said in a news release.
Ferris was chief financial officer of Cincinnati-based Worldpay when FIS acquired it and was appointed chief executive of FIS in December 2022.
The transaction “also allows us to simplify and drive greater focus on delivering innovative, next-generation financial technology and software solutions. At the same time, Worldpay will become a privately held company and benefit from the resources and expertise of GTCR, which has committed additional capital to allow Worldpay to pursue inorganic growth in the rapidly evolving payments space,” she said.
FIS will focus on its main business of banking technology and its capital markets technology business after the sale.
Besides the payment to FIS, GTCR said it will make an additional capital investment in Worldpay of up to $1.25 billion to pursue growth opportunities.
“Worldpay has established itself as a leader in the payments sector, and we see strong opportunity to enhance its existing physical, e-commerce and omni-channel presence through additional investment, allowing the business to capitalize on digital payment trends,” GTCR co-CEO Collin Roche said in a news release.
The deal values Worldpay at $18.5 billion, the companies said.
The companies hope to close the deal in the first quarter of 2024.