Fidelity National to Sell Majority Stake in Worldpay to GTCR

By Dean Seal

Fidelity National Information Services has agreed to sell a majority stake in its Worldpay Merchant Solutions segment to private-equity funds managed by GTCR in a deal that values the merchant business at $18.5 billion.

The financial-services-technology company said Thursday that it will receive upfront proceeds of about $11.7 billion while retaining a non-controlling 45% ownership interest in a standalone joint venture.

Proceeds from the sale will be used to pay down debt and return additional capital to shareholders via share buybacks.

Upon closing, Charles Drucker will become the new chief executive of WorldPay.

The deal has been unanimously approved by Fidelity's board of directors and is expected to close in the first quarter of 2024.

Fidelity said earlier this year that it was looking to spin off Worldpay into a separate company. Doing so would help Fidelity target a stronger investment credit rating and drive stronger performances at each business, executive said at the time.

In tandem with the deal announcement on Thursday, Fidelity said it now expects to deliver revenue, adjusted earnings and adjusted earnings before interest, taxes, depreciation and amortization in the second quarter that is above the midpoint of its guidance.

Shares ticked up 2% to $60.99 in premarket trading.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

July 06, 2023 07:42 ET (11:42 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.