GTCR / Worldpay 2023
GTCR acquired Worldpay for $19B on July 6, 2023.
- Target
- Worldpay
- Acquirer
- GTCR
- Deal value
- $19B
- Deal type
- Cash
- Announced
- July 6, 2023
- Sub-sector
- Payments
Transaction overview
- GTCR agreed on July 6, 2023 to acquire a 55% majority stake in Worldpay from FIS for approximately $18.5 billion in total enterprise value.
- FIS retained a 45% minority stake in Worldpay following the transaction close.
- The deal closed on January 31, 2024 after receiving required regulatory approvals.
- Worldpay is a payment processing company handling card-present and card-not-present transactions for merchants globally.
- Worldpay processed roughly $2.3 trillion in total payment volume in 2022.
- GTCR is a Chicago-based private equity firm with over $40 billion in assets raised since inception.
- FIS acquired Worldpay in 2019 for approximately $43 billion and subsequently separated the business amid underperformance.
- GTCR used its 'Leaders Strategy' framework, recruiting Charles Drucker as executive chairman to lead Worldpay post-close.
Why it matters
- The deal valued Worldpay at $18.5 billion, a steep discount to the $43 billion FIS paid in 2019, marking one of the largest write-downs in payments M&A history.
- The separation reversed one of the biggest financial technology mergers of the prior decade, signaling that large-scale payments consolidation had not delivered expected returns.
- GTCR's transaction was among the largest private equity buyouts of 2023 by enterprise value.
Strategic rationale
GTCR buys 55 percent stake in Worldpay from FIS at $18.5B EV, taking the merchant acquirer back to private equity ownership six years after the FIS-Vantiv deal.
Deal terms & multiples
About Worldpay
Worldpay is a payment processing company that provides acquiring, gateway, and processing services to merchants across more than 146 countries. The business handles both in-store and online transactions, with particular depth in e-commerce and integrated payments. Worldpay traces its roots to the UK, where it operated as a standalone public company before being acquired by Vantiv in 2018 and subsequently by FIS in 2019. Following the FIS separation, Worldpay operates as an independent entity headquartered in Cincinnati, Ohio.
- Founded
- 1989
- HQ
- United States
- Employees
- 10,000
- Prior funding
- Acquired by FIS in 2019 for approximately $43 billion; prior to that acquired by Vantiv in 2018 for approximately $10.4 billion
- Key metric
- ~$2.3 trillion in total payment volume processed in 2022
About GTCR
GTCR is a Chicago-based private equity firm founded in 1980. The firm has raised more than $40 billion across its fund series and focuses on financial services, healthcare, technology, and growth business services. GTCR is known for its 'Leaders Strategy,' which involves recruiting experienced executives before or alongside acquisitions to run portfolio companies. The firm has backed more than 270 companies over its history.
- Founded
- 1980
Frequently asked questions
How much did GTCR pay for Worldpay?
GTCR's acquisition valued Worldpay at approximately $18.5 billion in total enterprise value. GTCR acquired a 55% majority stake, with FIS retaining 45%.
Why did FIS sell Worldpay?
FIS acquired Worldpay in 2019 for roughly $43 billion but the combined business underperformed expectations. FIS decided to separate Worldpay to focus on its core banking technology operations and return capital to shareholders.
When did the GTCR Worldpay deal close?
The transaction closed on January 31, 2024, approximately seven months after the July 6, 2023 announcement.
What does Worldpay do?
Worldpay provides payment processing and acquiring services to merchants in more than 146 countries, covering both in-store and online transactions. It processed approximately $2.3 trillion in total payment volume in 2022.
Did FIS retain any stake in Worldpay after the sale?
Yes. FIS retained a 45% minority stake in Worldpay as part of the transaction structure.
Who runs Worldpay after the GTCR acquisition?
GTCR recruited Charles Drucker, a former CEO of Worldpay and Vantiv, to serve as executive chairman following the close.
Sources
- investor.fisglobal.com /news-releases/news-release-details/fis-accelerates-path-create-two-highly-focused-independent