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July 06, 2023 - Leading private equity firm, GTCR, has confirmed that it has finalised an agreement to secure a majority stake in Worldpay, a prominent global provider of payment processing solutions. The transaction, which is set to acquire 55% of Worldpay from financial services technology leader FIS, will see the business valued at $18.5 billion. FIS will continue to hold the remaining 45% share in the business. In addition, GTCR will invest further equity capital into Worldpay, committing up to $1.25 billion to explore inorganic growth opportunities.
Worldpay, known for its services that facilitate merchants to process in-store, online and mobile electronic payments, handles transactions worth over $2 trillion annually for more than a million merchant locations. The company's clients span a wide range of sectors, including retail, technology, media, travel, online gaming, and financial services.
GTCR aims to facilitate Worldpay's growth through innovation and strategic acquisitions. The company is projected to profit from enhanced agility as an independent entity, thereby accelerating organic growth. The new alignment allows for increased investment in product development and technology, venturing into new markets, expanding its geographic coverage, and investing in key growth sectors. Worldpay, in partnership with GTCR, will also pursue strategic M&A opportunities across verticals and geographies, as it has done successfully in the past, to augment Worldpay's capabilities and expand its market opportunity.
"We are thrilled to partner with Worldpay and its talented team to drive forward this market leading business," said Collin Roche, GTCR Co-CEO and Managing Director. "Worldpay has established itself as a leader in the payments sector, and we see strong opportunity to enhance its existing physical, e-commerce and omni-channel presence through additional investment, allowing the business to capitalize on digital payment trends. We look forward to leveraging the strength of the entire organization to build an even better business, positioning Worldpay for sustainable, long-term growth."
Charles Drucker, former Executive Chairman and CEO of Worldpay, will reassume his role as the CEO of the standalone Worldpay business upon closing the deal. Mr. Drucker had a successful tenure leading Worldpay and its predecessor, Vantiv, Inc. He expressed his enthusiasm to work alongside GTCR, citing the team's deep knowledge and experience within the financial technology sector. "Along with a group of extremely talented payments professionals, we successfully built Worldpay into a truly unique and global business that is well positioned to take advantage of the current dynamics in the payments market as a standalone business. I couldn't be more excited to work with these colleagues and GTCR to win in the global marketplace. The GTCR team has deep knowledge and experience within the financial technology sector, which will help position Worldpay for long-term success. I am extremely confident in the future of the business."
Aaron Cohen, Managing Director and Head of Financial Services & Technology at GTCR, stated: "As a firm, we have a long history of investing in the payments sector and have always viewed Worldpay as an innovative leader in the industry. The business has built a loyal core customer base by continuously evolving its product capabilities to meet merchant and consumer needs. Together with FIS and the Worldpay team, we plan to invest in attractive growth areas to continue to capture market opportunities, innovate products and solutions, and drive value to end customers and stakeholders."
The deal is expected to close by Q1 2024, following receipt of regulatory approvals and contractual consents.
Several banks, including JPMorgan Chase Bank, Goldman Sachs, Citi, Wells Fargo Bank, Deutsche Bank Securities, and UBS Securities, are providing debt financing support for the transaction.
