FIS (NYSE: FIS) has made a bold stride to secure its position as a dominant fintech leader, announcing the acquisition of Global Payments’ “Issuer Solutions” business for a staggering \(13.5 billion enterprise value and executing the monetization of its 45% Worldpay stake for \)6.6 billion in pre-tax value (source).
Issuer Solutions, a global powerhouse in credit processing, currently processes over 40 billion transactions annually across 75+ countries, boasting strong partnerships with 170+ financial institutions and corporates. This acquisition not only deepens FIS’ fintech product suite with cutting-edge credit processing capabilities but also expands its global market share, optimizing its end-to-end solutions for the banking and payments landscape.
“The acquisition of Issuer Solutions is a strategic and accretive transaction that will expand FIS’ payment product suite and deepen our relationships with financial institutions and corporate clients,” declared Stephanie Ferris, CEO and President of FIS (FIS News Release).
Issuer Solutions Acquisition:
Enterprise Value: $13.5 billion
Net Purchase Price: \(12 billion (net of \)1.5 billion expected NPV of tax assets)
Accretive Effects: Expected to increase Adjusted EBITDA margins, Adjusted EPS, and Adjusted Free Cash Flow within 12 months
Expected Synergies:
Revenue synergies: \(45 million (within 3 years), \)125+ million (long-term)
EBITDA synergies: $150+ million (within 3 years)
Market Penetration:
Access to \(28 billion global issuer market (\)15 billion US segment)
40+ billion transactions processed annually across 75 countries
Worldpay Stake Sale:
Stake Sold: 45%
Sale Price: $6.6 billion pre-tax, at a 10.5x 2025E EBITDA multiple (premium to prior 9.8x 2024 sale)
Strategic Outcome: Transition from a non-cash-generating minority interest to high-margin recurring revenues
FIS will finance the acquisition through \(8 billion in new debt alongside proceeds from the Worldpay transaction. Pro forma gross leverage is expected at 3.4x, targeting a rapid deleveraging to 2.8x within 18 months post-closing—key metrics for capital structure optimization. The new acquisition is anticipated to add \)500 million in incremental Adjusted Free Cash Flow during the first year of ownership.
Following these deals, FIS will prioritize debt reduction by temporarily pausing share buybacks and minor M&A activities, resuming them once leverage targets are met. Importantly, FIS will continue its commitment to annual dividend per share growth, aligning with Adjusted EPS growth—prioritizing shareholder returns throughout.
Total Revenue: $2.5 billion
Adjusted revenue and recurring revenue growth: ~4%
Banking Segment: Adjusted revenue growth ~2% (above high-end outlook), recurring revenue +3%
Capital Markets: Adjusted revenue growth ~9% (also above high-end outlook), recurring revenue +6%
Adjusted EBITDA: ~$958 million
Adjusted EPS: ~$1.21
FIS is reaffirming its full-year 2025 outlook for Adjusted Revenue Growth, Adjusted EBITDA, and Adjusted EPS.
Through this dual transaction—divesting a non-controlling, non-cash-generating asset and acquiring a global leader in issuer solutions—FIS is reinforcing its fintech scale in a market expected to exceed $28 billion. By achieving rapid EBITDA synergies and improving cash-flow quality, FIS is poised to deliver significant sustained value for shareholders and financial institutions worldwide.
“Issuer Solutions’ globally scaled credit processing capabilities are highly complementary to FIS’ established debit processing capabilities…” — Stephanie Ferris, CEO (FIS Press Release)
“The transaction enhances FIS’ financial profile and replaces our non-cash generating minority stake in Worldpay with a growing stream of recurring high-margin revenues and cash flows.”
The high-profile acquisition and asset sale underscore FIS as a financial technology trailblazer focused on statistical, technical, and financial optimization. With powerful synergies, robust recurring revenues, and continued focus on shareholder value via disciplined capital allocation, FIS is solidifying its role at the forefront of the global fintech space.
Sources: - SEC 8-K Filing - FIS Investor Relations: https://www.fisglobal.com
Tags: fintech, mergers-and-acquisitions, FIS, GlobalPayments, Worldpay