WorldPay payments firm in $43bn sale to US rival

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A customer using contactless to pay for a meal at a restaurantImage copyright
WorldPay

A payment processing firm that used to be owned by Royal Bank of Scotland has been sold in a deal worth $43bn (£32bn).

WorldPay has been bought by Florida-based Fidelity National Information Services (FIS) for $35bn in cash and shares, plus WorldPay’s debt.

FIS provides electronic payments services and also software for the finance industry.

WorldPay was sold by RBS as a condition of the bank’s financial crisis bailout.

The stock market values RBS at £32bn – roughly the size of the deal to buy WorldPay.

Last October, BT poached WorldPay’s co-head Philip Jansen to replace Gavin Patterson as chief executive of the telecoms group.

Financial software firm FIS said buying WorldPay would help it sell more services to banks and other financial firms.

FIS chief executive Gary Norcross said “scale matters in our rapidly changing industry”.

‘Rapid shift’

The rise of financial technology firms, known as fintech, has seen technology firms taking on banks in a race for control of the digital payments market.

“The need to invest, to continue to modernise both the technology and application layers, and continue to innovate so our customers can continue to be disrupters, will be important for us,” Mr Norcross told investors in a call on Monday.

Neil Wilson, from Markets.com said the deal “signifies the very rapid shift in the payments industry and the amount of investment the businesses need”.

“These guys do the all the rails and infrastructure and size is going to matter more and more as the number of transactions rises globally,” he said.

He expects more deals in the sector.



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