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Fidelity National to buy payment processor Worldpay for about US$35b
[BENGALURU] US fintech group Fidelity National Information Services Inc (FIS) has agreed to buy payment processor Worldpay for about US$35 billion, as it looks to bulk up in a lucrative yet rapidly changing industry.
The deal comes two years after US credit card processing company Vantiv merged with Worldpay in a US$10.63 billion deal.
Including debt, Fidelity National's offer values Worldpay at about US$43 billion, the companies said on Monday.
Worldpay shareholders will receive 0.9287 FIS shares and US$11 in cash for each share held, valuing the company at US$112.12 per share - a premium of about 14 per cent based on the stocks' Friday closing, according to Reuters calculations.
Once a backwater of banking, the financial software sector is now both lucrative and fast-growing, but also faces competition from newcomers trying to disrupt the way merchants are paid.
"Scale matters in our rapidly changing industry," FIS chief executive officer Gary Norcross said in the statement.
The combined company will retain the name FIS and will be headquartered in Jacksonville, Florida, the companies added.
Upon closing, FIS shareholders will own about 53 per cent and Worldpay shareholders will own about 47 per cent of the combined company.