Fintech Spirals Into the $34 Billion Stratosphere
Fidelity National needs everything to go right for its Worldpay takeover to pay off.
Worldpay Inc’.s head office, on the right.
Photographer: Jason Alden/BloombergEvery deal in the payments business looks expensive – until the next one comes along. Fidelity National Information Services Inc. is paying a heady $34 billion plus for Worldpay Inc. not much more than a year after the rival payments processing company bulked up with an expensive takeover of its own.
The logic of the combination is simply greater scale and scope. FIS has broader reach and wants to deploy Worldpay’s technology and services in markets that the target doesn’t already dominate. Hence the financial benefits of the combination are expected to come from a projected $500 million boost to revenue, with cost savings put at $400 million. Combined, the companies would have had operating profit of $2.4 billion in 2018.