Global Payments, an Atlanta-based provider of payment technology and software solutions, has announced agreements to sell its Issuer Solutions business to FIS for US$13.5 billion and to acquire Worldpay, a Cincinnati-based payment processing company, from GTCR and FIS for a net purchase price of US$22.7 billion.

The total value of the Worldpay acquisition stands at US$24.25 billion, including US$1.55 billion in anticipated tax assets.

The transactions reflect a 12.3x adjusted EBITDA multiple for Issuer Solutions and an 8.5x adjusted EBITDA multiple for Worldpay, based on a net basis inclusive of run-rate synergies.

Following the completion of the deal, Global Payments and Worldpay will combine their payment, software, and commerce enablement services, serving over 6 million customers and processing approximately 94 billion transactions totalling US$3.7 trillion in volume across more than 175 countries.

Cameron Bready, CEO of Global Payments, described the move as a “defining day” for the company, adding that the transactions would “further sharpen our strategic focus and simplify Global Payments as a pure play merchant solutions business with significantly expanded capabilities, extensive scale, greater market access and an enhanced financial profile.”

Bready also noted:

“This transaction provides us with one of the world’s most feature rich platforms to support ecommerce and enterprise customers across key high growth geographies and verticals, while also enhancing our integrated and embedded capabilities to deliver seamless solutions to software and platform providers worldwide.”

Charles Drucker, CEO of Worldpay, commented on the merger:

“We are excited to enter this next phase of Worldpay’s evolution by uniting with Global Payments to create something special in the payments industry. Our solutions will enhance value for our customers, especially for Worldpay’s small and medium-sized businesses.”

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