FIS has completed the strategic acquisition of Global Payments' Issuer Solutions business and the sale of the Worldpay stake.
Following this announcement, the transaction is expected to strengthen FIS’ position as a scaled fintech company with global reach and optimise its product suite across the money lifecycle.
In addition, the acquisition is expected to further develop immediate client value with the launch of new AI offerings and the overall expansion of FIS loyalty and commerce solutions to the world’s largest credit issuing institutions. FIS’ sale of its remaining 45% minority position in Worldpay to Global Payments will also complete the overall monetisation of its ownership stake.
Providing client and investor value
According to the official press release, the acquisition of Global Payments' Issuer Solutions business, formerly known as TSYS, was made for an enterprise value of USD 13.5 billion, or a net purchase price of USD 12 billion, including USD 1.5 billion of net present value of tax assets. Furthermore, offerings from this asset are expected to now go to market under the FIS Total Issuing Solutions portfolio brand.
FIS Total Issuing Solutions was developed as a global market company in credit processing, with a client presence in over 75 countries. With this acquisition, FIS will have the possibility to process a more comprehensive data set across consumer and commercial card portfolios, while also developing an optimised data intelligence engine. This scale is expected to provide the data richness and processing power required to train and deploy AI models that deliver genuine business value.
In addition, this portfolio was developed in order to be highly complementary to FIS’ banking and payments business through the process of adding a strong product suite in credit processing, fraud, loyalty, and other value-added services to FIS’ portfolio of debit processing, network services, payments processing, and loyalty solutions, as well as accounts payable and accounts receivable banking services. This process aims to also optimise end-to-end offering for financial institutions and corporates.
Moreover, the portfolio aims to expand market opportunity for FIS’ Banking segment through the initiative of enabling FIS to tap into a global issuer market opportunity of USD 28 billion, strengthening FIS’ financial profile and delivering robust revenue and cost synergies.
