Global fintech firm, FIS, has officially completed the sale of a majority stake in paytech solution provider Worldpay, which will now operate as an independent company.
The news comes after FIS committed to monetising the asset to bolster its balance sheet, to ensure greater strategic and operational agility by simplifying operations and driving faster innovation across its portfolio of solutions. The fintech will also retain a 45 per cent non-controlling equity stake in Worldpay; with private equity firm GTCR controlling the remaining 55 per cent.
FIS and Worldpay have entered into commercial agreements that will enable FIS to retain access to Worldpay’s marquee portfolio of commercial clients to continue to offer its fintech solutions and Worldpay to retain access to FIS’ financial institution clients as it continues to scale its bank channel.
FIS received upfront net cash proceeds of over $12billion at closing, which it intends to use to pay down debt and repurchase at least $3billion of shares throughout 2024, while maintaining an investment-grade credit rating.
Following the sale, Stephanie Ferris, CEO and president of FIS, commented: “I am pleased to deliver on the commitment we made in July to partially monetise our Merchant Solutions business at an attractive valuation and provide certainty for all stakeholders. With this strategic milestone, we are simplifying our business and driving greater focus on delivering innovative, next-generation financial technology and software solutions to our clients.
“FIS will continue strong, commercial agreements with Worldpay, creating a joint strategic go-to-market partnership and preserving a key value proposition for clients of both businesses. We will maintain a meaningful minority stake in Worldpay and participate on the Worldpay Board, allowing us to benefit from continued growth in its business.”
Operational changes
Charles Drucker has resumed his former role as CEO of Worldpay and will work to optimise performance and accelerate growth.
Drucker explained: “We will be faster and nimbler while bringing even more value to our clients and partners. The Worldpay team is passionate about payments and their clients, and together we will forge the future of this evolving industry. I’m also pleased to continue a strong partnership with FIS to preserve the end-to-end value proposition that has already benefitted so many of our clients.”
With the deal now complete, Worldpay has established a new board of directors. Vijay D’Silva and Louise Parent have agreed to serve as directors of Worldpay; while continuing their current terms of service on the FIS Board through the Company’s 2024 Annual Meeting.
Jeffrey A. Goldstein, independent chairman of the FIS Board, also commented: “We are grateful to Vijay and Louise for their contributions throughout their service on the FIS Board.
“Both were instrumental in overseeing the strategic review that resulted in the separation of the Worldpay business, served as key contributors to their individual committees, and provided differentiated perspectives in the boardroom informed by their unique backgrounds and skillsets. Their participation on the Worldpay Board adds significant payment expertise and will serve as an important bridge in our continued commercial partnership.”
