The logo of the global payment company observed displayed on a smartphone.
Igor Golovniov | Lightroket | Getty images
Global payments Shares dropped 17% on Thursday after the company said it Buy Worldpay For more than $ 24 billion while simultaneously selling its activities of emitting solutions to Fidelity National Information Services.
The company said that during the acquisition of Worldpay, which FIS had bought in 2019 before later selling a majority participation, it expands its scope and will be able to serve more than 6 million customers in more than 175 countries, which allows 3.7 billions of dollars in annual payment volume.
By selling its unit of FIS issuing solutions for $ 13.5 billion, world payments divest a Back-End financial processing unit which has long been considered a stable growth supplier. In the end, global payments become greater to provide payment services to traders, while FIS focuses on the processing of issuers.
Fis bought Worldpay for around $ 35 billion in 2019 and sold Most of his participation last year in GTCR.
Global Payments said Thursday that he had obtained funding for bridges and plans to issue $ 7.7 billion in debt “to replace the commitment and refinance debt in the circulation of Worldpay”.
The CEO of Global Payments, Cameron Bready, described it as a “day of definition”, and said that the transaction gave the company “considerably widened capacities, an in -depth scale, greater access to the market and an improved financial profile”.
But Wall Street was less enthusiastic. Although the acquisition gives global payments a greater imprint in paying payments, Mizuho analysts described it as a strategic step back.
Mizuho reiterated its neutral note on action, warning that “the company could see more significant margin pressure than investors recognize it”. Analysts wrote that Fa had won the profession, obtaining the “jewel of the crown” with world payments that get “more of the same thing”.
FIS shares increased more than 8% on Thursday.
The two transactions should conclude in the first half of 2026, pending regulatory approval.
WATCH: Global payments to buy Worldpay
