WASHINGTON (dpa-AFX) - Fidelity National Information Services (FIS), a financial technology company, Thursday said it has agreed to acquire rival Global Payments' (GPN) Issuer Solutions business for an enterprise value of $13.5 billion.
Issuer Solutions, a credit processing firm, processes more than 40 billion transactions per year.
The acquisition is expected to add to adjusted earnings in the first 12 months, with more than $125 million of revenue synergies longer-term. Within three years, the purchase is expected to deliver $45 million in incremental revenue synergies and more than $150 million in net EBITDA synergies.
Parallelly, FIS has agreed to sell its stake in Worldpay to Global Payments for a pre-tax price of $6.6 billion.
Both the transactions are expected to close in the first half of 2026.
'Issuer Solutions' globally scaled credit processing capabilities are highly complementary to FIS' established debit processing capabilities, strengthening our broader banking and capital markets offering,' said Stephanie Ferris, Chief Executive Officer and President of FIS. 'We are pleased to fully monetize our Worldpay stake at an attractive valuation. The transaction enhances FIS' financial profile and replaces our non-cash generating minority stake in Worldpay with a growing stream of recurring high-margin revenues and cash flows.'
FIS also provided preliminary results for the first quarter. For the quarter, the company expects revenue of $2.5 billion, and adjusted EPS of about $1.21.
On average, 25 analysts expect the company to report earnings of $1.20 per share on revenue of $2.5 billion for the quarter. Analysts' estimates typically exclude special items.
Additionally, the company has confirmed its fiscal 2025 outlook for adjusted revenue growth, adjusted EBITDA, and adjusted EPS.
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