Fidelity National Information Services (FIS) M&A Announcement summary

Deal rationale and strategic fit

• Monetizes a non-cash-generating minority stake in Worldpay at a premium valuation and replaces it with a high-margin, recurring revenue business, enhancing fintech leadership and product suite, especially in credit processing, fraud, and loyalty services.

• Acquisition of Issuer Solutions transforms the company into a scaled global credit processor, expanding global distribution, strengthening relationships with financial institutions and corporates, and enabling bundled offerings.

• Creates a $12B+ revenue, diversified global financial technology leader with a comprehensive product suite and international reach.

• Enables access to a $28 billion global issuer market, including a $15 billion U.S. opportunity.

• Significantly enhances international capabilities and market reach.

Financial terms and conditions

• Sells 45% stake in Worldpay to Global Payments for $6.6 billion at a 10.5x 2025E EBITDA multiple, generating $6.6B pre-tax value.

• Acquires Issuer Solutions for $13.5 billion enterprise value, with a net purchase price of $12 billion after tax assets, funded by $8 billion in new debt and Worldpay sale proceeds.

• Net transaction multiple is approximately 9x 2025E EBITDA after a $1.5 billion tax benefit.

• Transactions expected to close simultaneously in H1 2026, subject to regulatory and other customary approvals.

• FIS expects pro forma gross leverage of 3.4x at closing, targeting 2.8x within 18 months, after which share repurchases and M&A will resume.

Synergies and expected cost savings

• Targets over $150 million in annual EBITDA synergies by year three post-close.

• Expects $45 million in revenue synergies over three years, ramping to $125 million+ annually longer term.

• Cost savings of $125 million over three years from vendor optimization, back-office, and operational streamlining.

• Over $500 million in incremental adjusted free cash flow projected in the first 12 months post-closing.

• Synergies to be realized through cross-selling, international expansion, vendor cost rationalization, and operational consolidation.