Fidelity National Information Services And Global Payments Make A Deal

2025-04-17 19:00:04 ET

Summary

• Fidelity National Information Services, Inc.'s acquisition of Global Payments' Issuer Solutions for $13.5 billion and sale of its Worldpay stake to Global Payments are strategic, accretive moves.
• Both companies are expected to benefit from significant synergies, with Fidelity National Information Services targeting $150 million in EBITDA synergies within three years.
• Global Payments Inc.'s acquisition of Worldpay, valued at $24.25 billion, will enhance its global reach and solidify its position in the payments space, processing $4 trillion in transactions.
• I upgrade FIS stock to a "Buy" and initiate a "Buy" rating on GPN stock due to their attractive valuations and strategic moves.

April 17th ended up being a very interesting and big day for two large companies in the financial services sector. The first of these, Fidelity National Information Services, Inc. ( FIS ), saw its share price rise by roughly 8.7%, while the second, Global Payments Inc. ( GPN ) experienced a 17.4% plunge in its share price. These moves were related because the two companies announced what could essentially be considered asset swaps. Fidelity National Information Services has decided to acquire Global Payments’ Issuer Solutions business in an all cash deal, while simultaneously selling its minority interest in Worldpay to Global Payments, with the latter also entering into an agreement to acquire the remaining majority interest in Worldpay from its private owner, GTCR in a cash and stock deal....

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