Fidelity National Information Services (FIS) has reached a definitive agreement to sell a majority stake in Worldpay to private equity firm GTCR for almost $12 billion.

GTCR will take a 55 per cent stake after FIS valued the card payments provider at almost $18 billion – less than half of the roughly $43 billion it paid to merge Worldpay into its operations in 2019 -- while it will retain a 45 per cent ownership in a new standalone venture.

Noting that the agreement would enable greater management focus and operational simplification for both FIS and Worldpay, FIS said it would use proceeds from the stake sale to pay down debt and return additional capital to shareholders through its existing share repurchase authorisation.

“This transaction allows FIS to partially monetise our Merchant Solutions business at an attractive valuation and provides certainty for all stakeholders,” said FIS chief executive and president Stephanie Ferris, noting that Worldpay would become a privately held company and benefit from the resources and expertise of GTCR.

Ferris added that she was proud that FIS would maintain a meaningful minority stake in Worldpay and continue to participate on the Worldpay board.

Collin Roche, co-chief executive and managing director at GTCR said its stake acquisition would enable it build on the company’s culture, invest in new capabilities and advance its leadership position across channels and geographies.

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