Fidelity National Information Services Inc. FIS said Thursday it is accelerating its plan to split into two companies with an agreement to sell a majority stake in its Worldpay Merchant Solutions business to private-equity funds managed by GTCR in a deal that values Worldpay at $18.5 billion. FIS previously announced plans to spin off its merchant business, which largely consists of Worldpay, into a separate business, a move that would walk back the company’s merger with Worldpay that was announced in early 2019. On Thursday, it said the deal now agreed will give it $11.7 billion in proceeds and allow it to retain a 45% stake in Worldpay. GTCR has committed to investing up to $1.25 billion in additional growth capital to accelerate Worldpay’s growth strategy. The deal is expected to close by the first quarter of 2024 and Charles Drucker will remain CEO of Worldpay. “This attractive upfront valuation equates to a 9.8-times multiple on expected fiscal 2023 adjusted EBITDA, including estimated dis-synergies and previously unallocated corporate and other costs, which represents a material premium to FIS’ recent valuation of approximately 8-times, and is aligned with leading, scaled payments players,” FIS said in a statement. FIS’ stock has fallen 12% in the year to date, while the S&P 500 SPX has gained 16%.
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