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Private equity firm GTCR is in advanced discussions to purchase a majority stake in Fidelity National Information’s (NYSE:FIS) Worldpay business.
The acquisition is expected to value the Worldpay business at between $15 billion and $20 billion, according to a Reuters report on Monday, which cited people familiar with the matter. GTRC outbid an offer from rival PE firm Advent International. A deal could be reached in the coming days where FIS would keep a minority stake in the business.
The report comes after FIS rose 6% on Monday after a Financial Times story on Friday that buyout firms were exploring purchasing a majority stake in its Worldpay unit at a valuation of more than $15 billion.
The latest news follows Fidelity National’s (FIS) announcement in February that it planned to spin off its Merchant Solutions business, known as Worldpay. Fidelity National purchased Worldpay for about $35 billion in 2019.
A potential Worldpay sale “cleans up legacy FIS, reviving the story of a stable, high-margin, mid-single digit grower, reduces share-loss narrative overhand, de-levers, avoids assigning a spin-off multiple for Worldplay amid 1%-2% sales decline in 2023,” Mizuho analyst Dan Dolev, who has a buy rating and $80 price target on FIS, wrote in a note on Monday.
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