Global Payments (GPN) M&A Announcement summary

Deal rationale and strategic fit

• Divestiture of Issuer Solutions to FIS and acquisition of Worldpay for a net $22.7B positions the company as a leading pure-play commerce solutions provider with global scale, serving merchants from SMBs to large enterprises.

• Expands ecommerce, enterprise, and integrated capabilities, increasing exposure to high-growth digital native clients and verticals.

• Establishes a commercial partnership with FIS, broadening capabilities for financial institutions and enabling a comprehensive suite of solutions globally.

• Enables a unified, streamlined organization with diversified global presence and distribution, serving over 6M merchants and processing 94B transactions annually.

• Worldpay's strengths in digital, enterprise, and emerging markets complement existing offerings and open new growth opportunities.

Financial terms and conditions

• Issuer Solutions sold to FIS for $13.5B; Worldpay acquired for $22.7B net, total value $24.25B including $1.55B tax benefit; Worldpay acquired at 8.5x 2025E Adjusted EBITDA including synergies.

• Net increase in EBITDA of ~$1.6B for ~$10.75B net consideration, representing ~6.5x 2025E Adjusted EBITDA including synergies.

• GTCR to receive Global Payments stock at $97/share, about 15% pro forma ownership.

• Acquisition financed by sale proceeds, cash on hand, and $7.7B in new debt; bridge financing secured.

• Pro forma adjusted net revenues expected at $12.5B and adjusted EBITDA at $6.5B, with pro forma leverage at 3.5x net debt/EBITDA, targeted to return to 3.0x within 18–24 months; transaction expected to be EPS accretive in year 1.

Synergies and expected cost savings

• $600M in annual run-rate cost synergies targeted, mainly from operational, technology, and corporate overlaps, with full benefits expected within three years post-close.

• Revenue synergies of at least $200M anticipated from cross-selling, expanded distribution, and integrated offerings, leveraging combined ecommerce and SMB capabilities.

• Adjusted EPS accretion expected in the first year post-close, with mid to high single-digit accretion thereafter.