The payments industry nowadays is undergoing rapid changes with transformations that are mainly driven by digitalization and the integration of software-led financial solutions. In this context, Global Payments’ $24.25 billion acquisition of Worldpay, announced in April 2025, represents one of the biggest deals this sector has ever seen. The transaction is strategically structured as a three-party deal involving private equity firm GTCR and Fidelity National Information Services (FIS), and it allows Global Payments to emerge as a focused, pure-play merchant solutions provider. The main idea is to simplify operations and capture possible synergies. Additionally, the acquisition, as will be discussed in depth, is funded through a combination of cash, equity and new debt. Beyond this, the deal underscores broader industry dynamics including intensifying competition, margin pressures and the pursuit of a global reach. This article will explore the key financial details of the transaction, the market in which Global Payments operates and other significant factors of this deal.
Global Payments: From Spin-Off to Global Scale
Founded in 1996 as a spin-off from National Data Corporation, Global Payments is an American multinational payment technology company that has built its reputation on integrated merchant acquiring and vertical software solutions, operating as the middleman between retailers (merchant) and customers’ banks (issuer) to settle financial transactions. Listed on the New York Stock Exchange under the ticker symbol GPN, Global Payments was among the first pure-play payments companies to be publicly listed, paving the way for high-profile IPOs by rivals including PayPal, Mastercard, and Visa. The firm has posted robust financial performance in recent years, characterized by steady single-digit underlying growth in the post-pandemic period. It rounded off 2024 with an EBITDA of $4.334 billion (+20% YoY) and a net income of $1.57 billion, yielding a 15.5% net profit margin. Operating in well over 100 countries and processing billions of transactions annually, Global Payments has established itself as a formidable player in the payments technology industry, underlining its commitment to an expansive global reach and operational scale.
The company’s international growth is attributed to its aggressive strategic acquisitions of industry competitors, enabling it to enhance its customer reach and diversify its commercial offerings. Nevertheless, Global Payments’ $21.5 billion all-stock merger with Total System Services (TSYS) in 2019 remains the defining transaction in the company’s history, expanding its core competencies to include issuer processing and bolstering it into a one-stop-shop payment provider. The Worldpay deal would mark the 22nd acquisition by Global Payments.
Founded in 1996 as a spin-off from National Data Corporation, Global Payments is an American multinational payment technology company that has built its reputation on integrated merchant acquiring and vertical software solutions, operating as the middleman between retailers (merchant) and customers’ banks (issuer) to settle financial transactions. Listed on the New York Stock Exchange under the ticker symbol GPN, Global Payments was among the first pure-play payments companies to be publicly listed, paving the way for high-profile IPOs by rivals including PayPal, Mastercard, and Visa. The firm has posted robust financial performance in recent years, characterized by steady single-digit underlying growth in the post-pandemic period. It rounded off 2024 with an EBITDA of $4.334 billion (+20% YoY) and a net income of $1.57 billion, yielding a 15.5% net profit margin. Operating in well over 100 countries and processing billions of transactions annually, Global Payments has established itself as a formidable player in the payments technology industry, underlining its commitment to an expansive global reach and operational scale.
The company’s international growth is attributed to its aggressive strategic acquisitions of industry competitors, enabling it to enhance its customer reach and diversify its commercial offerings. Nevertheless, Global Payments’ $21.5 billion all-stock merger with Total System Services (TSYS) in 2019 remains the defining transaction in the company’s history, expanding its core competencies to include issuer processing and bolstering it into a one-stop-shop payment provider. The Worldpay deal would mark the 22nd acquisition by Global Payments.
Figure 1. Table of the most notable Global Payments’ deals
Sources: Reuters, Global Payments’ Internal Reports, Business Wire, Mergermarket
Worldpay: The Billion-Dollar Pass-the-Parcel
Conversely to Global Payments’ acquisition strategy, Worldpay’s history is characterized by that of tumultuous ownership changes. Established in 1989 as Streamline, the company began operations under the UK bank NatWest by processing card payments at retail stores. The Royal Bank of Scotland (RBS) gained control of the company following its acquisition of NatWest and its subsidiaries in 2000, introducing a strategic push into global markets via overseas investments. Nonetheless, the prior strategy proved costly to RBS, as the combination of aggressive expansions, such as the high-profile acquisition of Dutch bank ABN AMRO in 2007, valued at €71 billion, and exposure to risky financial instruments culminated in a forced £46 billion bailout by the UK government at the height of the financial crisis. The bailout conditions mandated Worldpay’s spin-off to spur liquidity, leading the firm to be picked up by private equity firms Advent International and Bain Capital in 2010- a foreshadowing of further ownership changes.
Worldpay was publicly listed on the London Stock Exchange in 2015, marking the largest IPO in the UK that year and valuing the firm at approximately £4.8 billion. Yet, Worldpay’s tenure as a public company proved brief, with the company being subsequently taken private following its acquisition by US-based competitor Vantiv in January 2018. Fidelity National Information Services (FIS) acquired Worldpay in 2019 for $43 billion, combining FIS’ banking and capital markets experience with Worldpay’s merchant acquisition to form a global powerhouse with over $12 billion in pro forma revenue and more than 55,000 employees worldwide. Nevertheless, Worldpay was spun off again in July 2023, this time to the private equity firm GTCR- and current largest shareholder- for $11.7 billion, valuing the firm at $18.5 billion, with FIS retaining a 45% non-controlling equity position. The most recent spin-off was fuelled by heightened competitive pressures, resulting in stagnation, and demands from activist investors for greater focus on core operations.
GTCR’s stint as the majority owner can be characterized as a performance turnaround for Worldpay. The private equity firm reinstated Charles Drucker as CEO, who had led the firm until the sale to FIS. GTCR’s efforts to enhance operational efficiency and grow through increased capex investment in product development and technology have culminated in accelerated annual growth of approximately 6%, a considerable increase from the previous 1-2%. Facilitating approximately 50 billion transactions, valued at $2.1 trillion in payment volume in 2024, Worldpay has solidified its position as one of the world’s leading payment providers in a dynamic industry.
Conversely to Global Payments’ acquisition strategy, Worldpay’s history is characterized by that of tumultuous ownership changes. Established in 1989 as Streamline, the company began operations under the UK bank NatWest by processing card payments at retail stores. The Royal Bank of Scotland (RBS) gained control of the company following its acquisition of NatWest and its subsidiaries in 2000, introducing a strategic push into global markets via overseas investments. Nonetheless, the prior strategy proved costly to RBS, as the combination of aggressive expansions, such as the high-profile acquisition of Dutch bank ABN AMRO in 2007, valued at €71 billion, and exposure to risky financial instruments culminated in a forced £46 billion bailout by the UK government at the height of the financial crisis. The bailout conditions mandated Worldpay’s spin-off to spur liquidity, leading the firm to be picked up by private equity firms Advent International and Bain Capital in 2010- a foreshadowing of further ownership changes.
Worldpay was publicly listed on the London Stock Exchange in 2015, marking the largest IPO in the UK that year and valuing the firm at approximately £4.8 billion. Yet, Worldpay’s tenure as a public company proved brief, with the company being subsequently taken private following its acquisition by US-based competitor Vantiv in January 2018. Fidelity National Information Services (FIS) acquired Worldpay in 2019 for $43 billion, combining FIS’ banking and capital markets experience with Worldpay’s merchant acquisition to form a global powerhouse with over $12 billion in pro forma revenue and more than 55,000 employees worldwide. Nevertheless, Worldpay was spun off again in July 2023, this time to the private equity firm GTCR- and current largest shareholder- for $11.7 billion, valuing the firm at $18.5 billion, with FIS retaining a 45% non-controlling equity position. The most recent spin-off was fuelled by heightened competitive pressures, resulting in stagnation, and demands from activist investors for greater focus on core operations.
GTCR’s stint as the majority owner can be characterized as a performance turnaround for Worldpay. The private equity firm reinstated Charles Drucker as CEO, who had led the firm until the sale to FIS. GTCR’s efforts to enhance operational efficiency and grow through increased capex investment in product development and technology have culminated in accelerated annual growth of approximately 6%, a considerable increase from the previous 1-2%. Facilitating approximately 50 billion transactions, valued at $2.1 trillion in payment volume in 2024, Worldpay has solidified its position as one of the world’s leading payment providers in a dynamic industry.
No Longer a Sure Bet: The Maturing of Payments
Nonetheless, despite the underlying growth and commercial expansion of companies like Global Payments and Worldpay, market sentiment towards the financial payments industry has been lukewarm since the pandemic, with certain firms unable to convince investors of a high-growth narrative. The stocks of companies, including Global Payments and FIS, have declined by approximately 30–40% since early 2021, echoing the general struggles and maturation of the payments industry during the post-pandemic period. Furthermore, competition has intensified considerably, with looming threats from payment fintechs, including Toast, Clover, and Square, which focus on sector-specific targeting that challenges the global coverage approach adopted by market leaders. The prior further nudges established firms like Global Payments and Worldpay to be on the lookout for solutions to solidify their market position.
Nonetheless, despite the underlying growth and commercial expansion of companies like Global Payments and Worldpay, market sentiment towards the financial payments industry has been lukewarm since the pandemic, with certain firms unable to convince investors of a high-growth narrative. The stocks of companies, including Global Payments and FIS, have declined by approximately 30–40% since early 2021, echoing the general struggles and maturation of the payments industry during the post-pandemic period. Furthermore, competition has intensified considerably, with looming threats from payment fintechs, including Toast, Clover, and Square, which focus on sector-specific targeting that challenges the global coverage approach adopted by market leaders. The prior further nudges established firms like Global Payments and Worldpay to be on the lookout for solutions to solidify their market position.
The Deal: Why Worldpay
In a deal unveiled in April 2025 Global Payments made public its plan to purchase Worldpay in a cash and stock transaction that stands out as one of the most notable consolidations in the payments sector so far. The agreement is designed as a three-party deal involving Fidelity National Information Services (FIS) which held a 45% minority stake and private equity firm GTCR which owned a majority stake of 55% in Worldpay. With this arrangement GTCR will receive Global Payments shares valued at a fixed price of $97. GTCR will end up owning around 15% of the expanded Global Payments company after the transaction is completed. Global Payments will finance the acquisition of Worldpay through the sale of the Issuer Solutions business to FIS for $13.5 billion as well as existing cash and new debt. The newly issued debt is expected to be around $7.7 billion both to finance the deal and to restructure Worldpay’s existing debt. The transaction is anticipated to be finalized in the next six months most likely by Q1 2026. The deal is worth $24.25 billion, with $1.55 billion in tax assets included. So Global Payments is effectively paying $10.7 billion in net value after accounting for the asset swap with FIS and tax benefits with a funding structure of around 70% debt and 30% equity (assuming the 7.7 billion in new debt is all allocated to funding the deal).
In a deal unveiled in April 2025 Global Payments made public its plan to purchase Worldpay in a cash and stock transaction that stands out as one of the most notable consolidations in the payments sector so far. The agreement is designed as a three-party deal involving Fidelity National Information Services (FIS) which held a 45% minority stake and private equity firm GTCR which owned a majority stake of 55% in Worldpay. With this arrangement GTCR will receive Global Payments shares valued at a fixed price of $97. GTCR will end up owning around 15% of the expanded Global Payments company after the transaction is completed. Global Payments will finance the acquisition of Worldpay through the sale of the Issuer Solutions business to FIS for $13.5 billion as well as existing cash and new debt. The newly issued debt is expected to be around $7.7 billion both to finance the deal and to restructure Worldpay’s existing debt. The transaction is anticipated to be finalized in the next six months most likely by Q1 2026. The deal is worth $24.25 billion, with $1.55 billion in tax assets included. So Global Payments is effectively paying $10.7 billion in net value after accounting for the asset swap with FIS and tax benefits with a funding structure of around 70% debt and 30% equity (assuming the 7.7 billion in new debt is all allocated to funding the deal).
Figure 2. Adjusted payments technology industry EV/EBITDA multiples (TTM from April 2025)
Sources: Bloomberg
Trailing twelve months (TTM) figures from April 2025, in particular the EV/EBITDA multiples across Global Payments’ competitors, exhibit significant variations, reflecting the differing growth narratives, market positions, and investor sentiment. High-growth companies like Adyen, Visa, and Mastercard command premium valuations, with multiples north of 25x, whereas firms like Worldline and Nexi trade at substantially lower multiples, at 3.60x and 6.89x respectively, suggesting sluggish growth prospects.
Global Payments' multiple of 7.59x positions it below the industry mean and median, indicating a more conservative market valuation. The acquisition values Worldpay at an enterprise value (EV) of $26.1 billion, which includes the assumed net debt of $7.2 billion. Based on this valuation, the deal reflects an adjusted EV/EBITDA multiple of approximately 8.5x, which includes some of the anticipated run-rate synergies. The peer median and mean numbers from our analysis would imply a valuation between $11.0 billion and $12.1 billion, nearly double the deal value agreed upon by Global Payments. The considerable discrepancy is a collection of numerous factors, including the overarching maturation of the industry, Worldpay’s past operational struggles, macro risk, and heightened competitive forces. Nonetheless, despite the multiple sitting below industry benchmarks, the transaction aligns with Global Payments’ long-term strategy of enhancing its merchant solutions; thereby, the 8.5x EV/EBITDA multiple can be seen as relatively attractive, signifying a potential market discount.
Financially, the acquisition is projected to achieve pro forma adjusted net revenue of approximately $12.5 billion and adjusted EBITDA of around $6.5 billion.
The rationale for the acquisition is strongly supported by anticipated cost synergies of $600 million and revenue synergies of at least $200 million which will be talked about in the next section.
Global Payments, from a capital structure perspective, plans to maintain its investment-grade credit rating. It now targets a net leverage ratio of approximately 3.5x at closing, with a goal of reducing it to 3.0x within two years post-transaction. This is evidence of the company's commitment to maintaining financial stability while pursuing growth opportunities.
Global Payments' multiple of 7.59x positions it below the industry mean and median, indicating a more conservative market valuation. The acquisition values Worldpay at an enterprise value (EV) of $26.1 billion, which includes the assumed net debt of $7.2 billion. Based on this valuation, the deal reflects an adjusted EV/EBITDA multiple of approximately 8.5x, which includes some of the anticipated run-rate synergies. The peer median and mean numbers from our analysis would imply a valuation between $11.0 billion and $12.1 billion, nearly double the deal value agreed upon by Global Payments. The considerable discrepancy is a collection of numerous factors, including the overarching maturation of the industry, Worldpay’s past operational struggles, macro risk, and heightened competitive forces. Nonetheless, despite the multiple sitting below industry benchmarks, the transaction aligns with Global Payments’ long-term strategy of enhancing its merchant solutions; thereby, the 8.5x EV/EBITDA multiple can be seen as relatively attractive, signifying a potential market discount.
Financially, the acquisition is projected to achieve pro forma adjusted net revenue of approximately $12.5 billion and adjusted EBITDA of around $6.5 billion.
The rationale for the acquisition is strongly supported by anticipated cost synergies of $600 million and revenue synergies of at least $200 million which will be talked about in the next section.
Global Payments, from a capital structure perspective, plans to maintain its investment-grade credit rating. It now targets a net leverage ratio of approximately 3.5x at closing, with a goal of reducing it to 3.0x within two years post-transaction. This is evidence of the company's commitment to maintaining financial stability while pursuing growth opportunities.
Synergies and Competitive Implications, Market Outlook and Legal Implications
The $24.25 billion acquisition of Worldpay by Global Payments is one of the most significant mergers in the payment processing industry. Global Payments now expects to have more than 6 million customers, processing approximately 94 billion transactions, totaling $3.7 trillion in volume across more than 175 countries.
One of the primary drivers of this acquisition is the substantial cost synergies that the two firms have managed to put together, estimated at $600 million. The synergies are expected to grow through the integration of overlapping operations and streamlined technology platforms. Recently, however, analysts have expressed some skepticism over revenue synergies, noting that the primary value lies especially in cost reductions.
The recent acquisition also allows Global Payments to simplify its business model focus by divesting its Issuer Solutions business to FIS for $13.5 billion. The move puts Global Payments as one of the pure-play commerce solutions providers, potentially enhancing the competitiveness in the global merchant acquiring space.
The $24.25 billion acquisition of Worldpay by Global Payments is one of the most significant mergers in the payment processing industry. Global Payments now expects to have more than 6 million customers, processing approximately 94 billion transactions, totaling $3.7 trillion in volume across more than 175 countries.
One of the primary drivers of this acquisition is the substantial cost synergies that the two firms have managed to put together, estimated at $600 million. The synergies are expected to grow through the integration of overlapping operations and streamlined technology platforms. Recently, however, analysts have expressed some skepticism over revenue synergies, noting that the primary value lies especially in cost reductions.
The recent acquisition also allows Global Payments to simplify its business model focus by divesting its Issuer Solutions business to FIS for $13.5 billion. The move puts Global Payments as one of the pure-play commerce solutions providers, potentially enhancing the competitiveness in the global merchant acquiring space.
Figure 3. Estimated Annual Synergies from Merger (EUR million)
Source: Global Payments press release
By serving over 6 million customers, Global Payments has significantly expanded its global footprint. In addition, the integration of Worldpay's capabilities is expected to bolster Global Payments' offerings in e-commerce and omni-channel solutions, areas where Worldpay has already very well-established strengths. This enhanced portfolio will help Worldpay serve a diverse range of merchants globally, from small businesses to large enterprises.
However, the acquisition may also bring some potential challenges. In the past Worldpay has seen a reduced market share following some operational inefficiencies. To avoid any possible disruption, it is crucial to have very careful management in order to fully enhance the benefits of the acquisition.
With a look towards the market in the payment processing industry, it is characterized by intense competition, with key and famous players including PayPal, Stripe, Adyen, and Fiserv. Worldpay's market share in the payment management category stands at trails behind PayPal, Stripe and Adyen. Through the new acquisition Global Payments is expected to increase its market share by expanding its scale and the service offered. However, the company will still have to address different challenges like Worldpay’s operations and past performance issues. Its success will depend on its ability to leverage the combined strength of the two entities in order to offer innovative and efficient payment solutions.
However, the acquisition may also bring some potential challenges. In the past Worldpay has seen a reduced market share following some operational inefficiencies. To avoid any possible disruption, it is crucial to have very careful management in order to fully enhance the benefits of the acquisition.
With a look towards the market in the payment processing industry, it is characterized by intense competition, with key and famous players including PayPal, Stripe, Adyen, and Fiserv. Worldpay's market share in the payment management category stands at trails behind PayPal, Stripe and Adyen. Through the new acquisition Global Payments is expected to increase its market share by expanding its scale and the service offered. However, the company will still have to address different challenges like Worldpay’s operations and past performance issues. Its success will depend on its ability to leverage the combined strength of the two entities in order to offer innovative and efficient payment solutions.
Figure 4. Market Share
Source: 6Sense
Like most big acquisitions, this one also involves complex legal issues including regulatory approvals and compliance with antitrust laws. The completion of these approvals is expected to be in the first half of 2026. Legal advisors, including Kirkland & Ellis, are representing the parties involved to navigate the regulatory landscape and given the nature of the transaction, which involves both cash and stock components, it necessitates careful legal and financial planning especially to address possible tax implications and shareholder interests.
Future Outlook and Possible Complications
In conclusion, Global Payments’ acquisition of Worldpay marks a pivotal consolidation in the payments industry, signalling a strategic recalibration amid industry-wide maturation and intensified competition dynamics. For Global Payments, the $24.25 billion transaction offers both scale and specialization. The divestiture of its Issuer Solutions unit to FIS and absorption of Worldpay’s successful merchant acquisition and e-commerce capabilities sharpens its focus as a pure-play commerce enabler. Meanwhile, GTCR capitalizes on its swift turnaround of Worldpay, receiving a massive windfall while exposing the private equity firm to further equity upside through a non-controlling equity position. The deal is underpinned by compelling financials, an 8.5x EV/EBITDA multiple and projected pro forma EBITDA of $6.5 billion but will ultimately be judged on execution. Further, while robust cost and revenue synergies of $800 million bolster future growth opportunities, careful operational integration will remain at the forefront of Global Payments’ future roadmap, particularly given Worldpay’s past inefficiencies.
In the broader market context, this deal reflects a defensive yet strategic response to slowing growth, investor scepticism, and the rising threat of vertically focused fintechs like Square and Clover. It underscores the need for incumbents to scale up, streamline, and innovate to remain competitive. Regulatory scrutiny and geopolitical risk, including rising protectionist sentiment under the Trump administration, add further complexity, particularly for transnational M&A involving sensitive financial infrastructure. If successful, the transaction will position Global Payments as one of the sector’s most comprehensive and globally integrated players. However, in an environment shaped by macro volatility and technological disruption, which place the industry at an inflection point, scale alone will not suffice to create value- strategic agility and disciplined integration will be decisive.
In conclusion, Global Payments’ acquisition of Worldpay marks a pivotal consolidation in the payments industry, signalling a strategic recalibration amid industry-wide maturation and intensified competition dynamics. For Global Payments, the $24.25 billion transaction offers both scale and specialization. The divestiture of its Issuer Solutions unit to FIS and absorption of Worldpay’s successful merchant acquisition and e-commerce capabilities sharpens its focus as a pure-play commerce enabler. Meanwhile, GTCR capitalizes on its swift turnaround of Worldpay, receiving a massive windfall while exposing the private equity firm to further equity upside through a non-controlling equity position. The deal is underpinned by compelling financials, an 8.5x EV/EBITDA multiple and projected pro forma EBITDA of $6.5 billion but will ultimately be judged on execution. Further, while robust cost and revenue synergies of $800 million bolster future growth opportunities, careful operational integration will remain at the forefront of Global Payments’ future roadmap, particularly given Worldpay’s past inefficiencies.
In the broader market context, this deal reflects a defensive yet strategic response to slowing growth, investor scepticism, and the rising threat of vertically focused fintechs like Square and Clover. It underscores the need for incumbents to scale up, streamline, and innovate to remain competitive. Regulatory scrutiny and geopolitical risk, including rising protectionist sentiment under the Trump administration, add further complexity, particularly for transnational M&A involving sensitive financial infrastructure. If successful, the transaction will position Global Payments as one of the sector’s most comprehensive and globally integrated players. However, in an environment shaped by macro volatility and technological disruption, which place the industry at an inflection point, scale alone will not suffice to create value- strategic agility and disciplined integration will be decisive.
By: Jacopo Bianchini, Roberts Rancans, Giacomo Ferrante
References:
- WSJ
- FT
- CNBC
- Tradingviews
- Yahoo Finance
- Reuters
- Bloomberg
- Mergermarket
- The Business Journals
- Fis Global Investors
- M&A Port
- The Guardian
- Business Wire
- Global Payments Inc.
- The Motley Fool
- Macrotrends
- BCG
- Adyen
- Morningstar