Global Payments Reshapes Payment Ecosystem with Strategic Worldpay Acquisition and Issuer Solutions Divestiture

Global Payments is making a bold strategic pivot through a landmark dual transaction that fundamentally transforms its business positioning. The company will divest its Issuer Solutions segment to FIS for $13.5 billion while simultaneously acquiring Worldpay from GTCR and FIS at a net purchase price of $22.7 billion (representing a total value of $24.25 billion including $1.55 billion in anticipated tax assets).

Strategic Consolidation Creates Payment Industry Powerhouse

This transaction reshapes Global Payments into a pure-play merchant solutions provider with unprecedented scale and geographic reach. The combined entity will serve more than 6 million customers across 175+ countries, processing approximately 94 billion transactions annually and handling $3.7 trillion in global payment volume.

The acquisition addresses a critical market opportunity: consolidating complementary capabilities across the payments spectrum. Global Payments brings strength in SMB solutions and POS technology through its Genius offerings, while Worldpay contributes world-class ecommerce and enterprise payment infrastructure. Together, they create an end-to-end platform capable of serving merchants ranging from small businesses to multinational enterprises.

CEO Cameron Bready framed the transaction as a “defining day” for the organization, emphasizing how the deal sharpens focus by eliminating the less strategic issuer processing business and concentrating resources on higher-growth merchant solutions. This focused strategy positions the combined company to compete more effectively against fragmented regional players and global payment giants.

Financial Impact and Value Creation Framework

The merged company projects pro forma 2025 adjusted net revenue of approximately $12.5 billion with adjusted EBITDA reaching $6.5 billion. These figures already incorporate anticipated run-rate synergies, providing a realistic baseline for investor expectations rather than aspirational targets.

Cost synergies represent the most tangible value driver. Global Payments forecasts approximately $600 million in annual run-rate expense reductions within three years of closing, primarily through consolidating technology infrastructure, business operations, and capturing scale efficiencies. This suggests considerable operational overlap that can be eliminated without sacrificing customer-facing capabilities.

Revenue synergies of at least $200 million annually are projected as the combined platform leverages its expanded distribution footprint and cross-selling capabilities. Worldpay’s SMB customer base gains access to Global Payments’ commerce enablement solutions, while enterprise clients benefit from integrated payment infrastructure. Additionally, the deal expands integrated and embedded capabilities for software and platform partners through Worldpay’s Payrix offering.

The transaction is expected to be modestly accretive to earnings per share in year one and mid to high single-digit accretive thereafter, reflecting typical M&A integration timing. Global Payments intends to maintain investment-grade credit ratings at closing and reduce adjusted net leverage from approximately 3.5x to 3.0x within 18-24 months, demonstrating disciplined capital management.

Strategic Partnerships and Market Position

Beyond the core transaction, Global Payments and FIS are establishing a commercial relationship to deliver integrated solutions combining FIS’s core banking, treasury management, and issuer processing capabilities with Global Payments’ merchant solutions. This partnership structure enables both companies to serve broader customer segments without the complexity of full integration.

The deal also reflects evolving payment market dynamics. Ecommerce capabilities have become table-stakes for major processors, and enterprise customers increasingly demand integrated solutions spanning multiple payment channels. By acquiring Worldpay’s ecommerce strength, Global Payments fills a capability gap while maintaining its established SMB distribution network.

Transaction Mechanics and Timeline

The divestiture and acquisition will close simultaneously to streamline the transaction structure. FIS receives cash consideration plus its existing Worldpay stake for Issuer Solutions, while GTCR receives Global Payments shares (representing approximately 15% of outstanding shares on a pro forma basis) valued at $97.00 per share for the remaining Worldpay stake.

Global Payments is financing the acquisition through cash proceeds from the Issuer Solutions sale, existing cash balances, and new debt issuance. The company has secured committed bridge financing and plans to raise $7.7 billion in debt securities between signing and closing, which will replace the bridge commitment and refinance Worldpay’s existing obligations.

Regulatory approvals and customary closing conditions must be satisfied, with the transaction expected to close during the first half of 2026. This timeline allows adequate space for regulatory review and operational planning for the integration.

Q1 2025 Performance and Full-Year Outlook

Global Payments provided preliminary Q1 2025 results showing total company adjusted net revenue of $2,205 million, reflecting constant currency growth exceeding 5% when excluding dispositions. Merchant Solutions generated $1,692 million in adjusted net revenue with approximately 6% constant currency growth, while Issuer Solutions contributed $529 million with 3% growth.

Adjusted earnings per share are expected at $2.69 (including share-based compensation) or $2.83 (excluding share-based compensation), representing approximately 10% growth on a constant currency basis. The company is reaffirming its full-year 2025 guidance for adjusted net revenue, operating margin, and earnings per share despite the substantial transaction announcement, suggesting confidence in near-term business momentum independent of the deal.

This combination of strong operational performance, strategic market repositioning, and financial engineering creates a compelling foundation for Global Payments’ next growth phase in an increasingly consolidated payments industry.