The American fintech group, Fidelity National Information Services has agreed to buy Worldpay, the payment processor for around $35 billion. This is the biggest deal till now in the payments group, which is booming. The deal happens to be the most recent in a wave of consolidation in the sectors of financial software and payments technology. The firms get together to compete with newcomers, who are seeking to cause disruption because of the manner in which merchants get paid. Finserv, which is based in the US, purchased payment processor First Data in the month of January for $22 billion.
If we talk of Europe, start-ups like Nexi from Italy has plans to get listed. They intend to capitalize on the increasing interest within the industry, which has been fuelled up by a surge in online sales. The offer of Fidelity National Information Services for Worldpay tends to value the payment processor at around $43 billion if debt gets included. The London listed shares for Worldpay had moved up 9.4 percent to trade at 8104 pence during early trading hours on Monday. The Chief Executive Officer of FIS, Gary Norcross said through a statement that scale tends to matter a lot in their rapidly changing industry. The shareholders of Worldpay would receive 0.9287 shares of FIS and $11 in cash for every share held.
The companies have stated that the combined entity would have a revenue of around $12 billion. On the closure, the shareholders of FIS would own around 53 percent, while Worldpay shareholders would take around 47 percent of the combined entity. Worldpay has managed to provide service for payment processing for more than 40 years. They have operated as a business unit for Fifth Third Bancorp till June 2009.
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