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Global payments Shares fell 17% on Thursday after saying they were selling their issuer solutions business and buying WorldPay for over $24 billion Fidelity National Information Services.
The company said when FIS acquires WorldPay, which it purchased before selling its majority stake in 2019, it could expand its scope, serving more than 6 million customers in over 175 countries, allowing for a $3.7 trillion annual payment volume.
When selling the Issuer Solutions Unit to FIS for $13.5 billion, Global Payments sells backend financial processing units that have long been considered a stable provider of growth. Ultimately, global payments are growing in providing payment services to merchants while FIS focuses on issuer processing.
FIS bought WorldPay for around $35 billion in 2019 and sold most of its shares from last year to GTCR.
Global Payments said Thursday it plans to acquire funding for the committed bridge and issue $7.7 billion in debt “to replace Bridge’s commitments and refinance World Pay’s outstanding debt.”
Global Payments CEO Cameron Brady called it the “definition date” and said the transaction “has significantly expanded capacity, large scale, increased market access and strengthened its financial profile.”
But Wall Street wasn’t very enthusiastic. The acquisition gives global payments a greater footprint in payment processing, but Mizuho analysts described it as a strategic step backwards.
Mizuho repeatedly made a neutral valuation of the stock, warning that “business may see more meaningful margin pressure than investors have admitted.” Analysts write that FIS wins trade and gets “crown jewels” global payments “just like that.”
FIS shares rose more than 8% on Thursday.
Both transactions are expected to close in the first half of 2026 when regulatory approval is pending.
Watch: Global Payments to Buy Global Payments
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