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Investing.com -- Global Payments (NYSE:GPN), in a significant move, announced plans to sell its issuer business to FIS for $13.5 billion and at the same time, acquire Worldpay from GTCR for a total consideration of $24.5 billion. This deal will be paid in debt and Global shares, each valued at $97.
Global Payments stated that it’s paying 8.5 times the trailing EBITDA for Worldpay, which includes synergies, and 10.5 times the reported results. This is in comparison to the approximate 9.8 times multiple at which GTCR had originally purchased Worldpay.
The combination of these deals is expected to position Global Payments as potentially the world’s largest merchant processor, according to William Blair. Additionally, it will make Global Payments the only publicly traded company solely dedicated to this business in the market.
Despite some skepticism about large acquisitions due to a history of underperformance, this transaction is viewed as a landmark deal for Global Payments. Given the company’s stock’s low 7.2 times estimated 2026 EBITDA multiple, there are expectations for the shares to trade higher.
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