FIS to sell stake in merchant business to GTCR for $18.5 billion

Private equity firm GTCR on Thursday agreed to buy a 55 per cent stake in Worldpay, the merchant services business of Fidelity National Information Services, in a deal that values the unit at $18.5 billion.

As part of the deal, which is the largest ever for GTCR, FIS will receive upfront proceeds of $11.7 billion and keep a 45 per cent stake in the new entity, according to a statement. Reuters was first to report on Monday that GTCR was in advanced talks to buy a majority stake in Worldpay.

The transaction would effectively undo FIS’ $43 billion acquisition of Worldpay in 2019, after the unit lost market share to traditional competitors and new financial technology startups.

 

In December, FIS launched a strategic review under new CEO Stephanie Ferris, after facing pressure from activist hedge funds DE Shaw and Jana Partners. In February, FIS said it would consider a spinoff of the merchant services unit, which processes transactions for companies, after taking a $17.6 billion writedown.