Major Restructuring in the Payments Industry
In a significant reshuffling of the payments landscape, Fidelity National Information Service (FIS )and Global Payments have announced a two-part deal valued at nearly $38 billion. As part of the transaction, FIS and Global Payments will acquire Worldpay—a leading merchant services provider—for $24.25 billion from FIS and private equity firm GTCR. This amount includes $1.55 billion in tax assets.
Simultaneously, FIS will purchase Global Payments’ issuer business for $13.5 billion, which includes $1.5 billion in tax assets. This exchange aligns with both companies’ ongoing strategies to concentrate on their core operations: Global Payments will focus more on merchant services, while FIS reinforces its banking and payment solutions division.
The move comes after a period of transition for Global Payments, which has been exploring ways to streamline its business. Analysts had previously encouraged the company to sell its issuer segment and strengthen its core payment processing operations. FIS, based in Jacksonville, Florida, views the acquisition as a natural fit that bolsters its services to financial institutions and corporate clients.
Strategic Opportunities and Revenue Potential
The dual deal allows both companies to deepen their presence in their respective domains. For FIS and Global Payments, acquiring Worldpay means gaining a broader global footprint. The company highlighted that the combined entity will serve six million merchant customers and process 94 billion transactions annually, totaling $3.7 trillion in payments across 175 countries.
Meanwhile, FIS expects to benefit from significant cross-selling opportunities by integrating Global Payments’ issuer business, which handles 40 billion transactions annually across 75 countries. With ties to approximately 170 banks and corporations, this addition will strengthen FIS’s capabilities, particularly in debit card processing.
Analysts at William Blair emphasized that while initial revenue synergies may be modest, the long-term cross-sell potential is considerable. FIS could leverage its debit-focused Payments One platform in tandem with Global Payments’ strong credit offerings to expand loyalty programs and other value-added services. There’s also potential growth in business-to-business payments, according to their report.
FIS CEO Stephanie Ferris described the deal as “strategic and accretive,” underscoring the advantages of combining product suites and client relationships.
Risks and Market Reactions
Despite the promise, analysts and ratings agencies have flagged potential challenges. RBC Capital Markets analyst Daniel Perlin argued that FIS may have emerged with the better end of the deal, noting the company is exchanging a non-cash stake in Worldpay for recurring revenue streams. On the other hand, FIS and Global Payments, while gaining scale, may face narrative complexity and integration risks as it absorbs Worldpay’s operations.
TD Cowen analysts noted Global Payments’ plans to utilize Worldpay’s vast distribution network, including a 4,000-person sales force and access to markets in France, Scandinavia, and the Middle East. However, they also warned that Global Payments’ recent strategic transitions could compound integration difficulties, with risks of merchant client attrition and slowed revenue growth.
Fitch Ratings echoed these concerns, downgrading FIS’ outlook from “positive” to “stable,” citing near-term execution risks despite the simplification brought by the Worldpay divestiture.
Both companies anticipate the deals will close in the first half of 2026, marking a new chapter in the rapidly evolving FIS and Global Payments industry.
