Catenaa, Tuesday, April 22, 2025-Global Payments Inc. shares plummeted 17% Thursday after the company announced a $24 billion acquisition of Worldpay, marking a major reshuffling of the payments industry.
At the same time, Global Payments said it would divest its Issuer Solutions business to Fidelity National Information Services (FIS) for $13.5 billion.
The company said acquiring Worldpay will significantly expand its global footprint, enabling it to serve over six million customers in more than 175 countries. The combined annual payment volume would exceed $3.7 trillion, according to the firm.
To fund the deal, Global Payments secured bridge financing and will issue $7.7 billion in debt to both replace the interim loan and refinance Worldpay’s outstanding obligations.
CEO Cameron Bready called the move a “defining day,” touting the benefits of expanded capabilities and a strengthened financial profile. However, investor sentiment was far less bullish. Shares slid sharply as analysts questioned the strategic value of the acquisition.
Mizuho analysts criticized the deal, saying Global Payments is trading stability for redundancy. The firm retained its neutral rating on the stock, suggesting the business could face margin pressure. By contrast, FIS, which acquired Worldpay in 2019 before selling a majority stake last year, saw its shares rise more than 8%.
FIS will now refocus on issuer processing, while Global Payments doubles down on merchant services.
Both transactions are expected to close in the first half of 2026, pending regulatory approval.
