FIS Acquires Worldpay

Banking technology giant FIS is acquiring payments firm Worldpay via a cash and stock combination – bringing Worldpay’s enterprise value to approximately $43 billion (including the assumption of Worldpay debt, which FIS expects to refinance), reports Henry Vilar of Fintech Futures (Finovate’s sister publication).

According to Bloomberg, FIS is spending $34 billion on this purchase.

“Scale matters in our rapidly changing industry,” said Gary Norcross, chairman, president and CEO, FIS. “Upon closing later this year, our two powerhouse organisations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.”

“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives,” said Charles Drucker, executive chairman and chief executive officer, Worldpay.

Organic revenue growth outlook has grown from 6% to 9% through 2021 for FIS, in conjunction with $700 million of total EBITDA synergies from the combination of revenue and expense opportunities over the next three years.

This acquisition comes hot on the heels of another massive deal in the payments space: Fiserv, another US heavyweight and direct rival of FIS, buying First Data.

Worldpay, as it is today, is also the result of a big merger with Vantiv announced back in 2017.

The combined company of Worldpay and FIS will have pro forma 2018 annual revenue and adjusted EBITDA of approximately $12.3 billion and $4.9 billion, respectively.

Upon closing, the combined company’s Board of Directors will consist of 12 members, seven of which will come from FIS’ board of directors and five of which will come from Worldpay’s.

Gary Norcross will remain as FIS chairman of the board, president and chief executive officer. Charles Drucker, Worldpay’s current executive chairman and CEO, will serve as the executive vice-chairman of the board.

The transaction is subject to receipt of required regulatory and shareholder approvals and other customary closing conditions and is expected to close in the second half of 2019.

FIS demonstrated its Cardless Cash solution at FinovateFall 2016. Cardless Cash provides consumers with faster, more secure options when it comes to sending and accessing cash via ATMs, including the ability to pre-order funds from their mobile banking app.

Founded in 1958 and headquartered in Jacksonville, Florida, FIS trades on the New York Stock Exchange under the ticker “FIS.” The company has a market capitalization of $35 billion.

Worldpay participated in our developers conference, FinDEVrSiliconValley 2015. The company’s Head of Strategic Partnerships discussed how businesses can add secure payments to any website, app, or mobile device via the Worldpay Securenet API.

Worldpay was founded in 1971 (as Midwest Payment Systems) and is headquartered in Cincinnati, Ohio. With a market capitalization of $33 billion, Worldpay trades on the NYSE under the ticker “WP.”

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Zenmonics Lands Funding from FIS

Core banking specialist Zenmonics landed funding from its long-time partner FIS this week. The amount of the minority investment, along with other terms of the agreement remain undisclosed. This marks Zenmonics’ first round of funding; prior to the closing of this week’s investment Zenmonics was 100% company-owned.

The North Carolina-based company will use the funds to further its growth and burgeon capabilities of its channelUNITED platform. Riaz Syed, founder and CEO of Zenmonics said that the investment enables the company “to grow innovation and delivery capacity for our current clients, while also extending our reach in the market.”

Aimed to offer a consistent user experience across multiple channels, Zenmonics’ channelUNITED is an omni-channel solution that adapts and expands to each individual banks’ pace. The system places clients and associates on a common system to unify digital, sales, service, origination, and teller platforms.

Founded in 2007, Zenmonics has more than 200 employees. At FinovateFall 2016, the company debuted channelUnited. Earlier this week, Zenmonics earned a spot on the 2018 IDC FinTech Rankings for the second year in a row.

FIS most recently demoed at FinovateFall 2016. The company debuted its Cardless Cash solution that provides a fast, secure option for sending and picking up cash at any ATM. Headquartered in Florida, FIS serves more than 20,000 clients in more than 130 countries.

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Ignite Sales and FIS Team Up on Digital Engagement

Data analytics company Ignite Sales and financial services giant FIS joined forces this week. Through the partnership, Ignite Sales will make its customer engagement technology available to FIS community banking clients.

The cloud-based customer engagement and application conversion technology, Ignite Dialogue, is made available in affordable, easy-to-implement packages. Ignite adapted this technology last March to make the service– previously only accessible to larger banks– now affordable and approachable for smaller financial institutions.

“We are excited and honored to partner with the FIS team,” said George Noga, CEO of Ignite Sales. “We share a common goal of empowering banks and credit unions with technology and service that delivers a competitive differentiator in the market place.”

Ignite Dialogue helps smaller banks enhance the customer experience for their consumer and small business customers by guiding banks to discover each client’s needs and match them with products and services tailored to meet their specific financial requirements. The service comes with an IQ Analytics reporting portal that guides the bank to develop their sales capabilities across all channels. The press release reports strong success metrics, citing that banks using the technology “often see customer satisfaction scores go up by as much as 40% and an increase in customer product adoption by as much as 200%.”

Headquartered in Texas, Ignite Sales offers customer engagement solutions for a range of bank sizes. The company also offers LeadLync, which automatically reports customer engagement results and recommendations directly into Salesforce; and IQAnalytics, an on-demand cloud-based analytics solution for customer and front office insights.

At FinovateFall 2013 the company launched the Branch Profitability Dashboard that offers a visual overview of profitability and sales across branches. The dashboard also presents a gap analysis for each sale to uncover where the branch falls short. Last month, Ignite Sales won a 2018 Stevie Award for AI / Machine Learning New Product of the Year.

FIS most recently demoed at FinovateFall 2016. The company debuted its Cardless Cash solution that provides a fast, secure options for sending and picking up cash at any ATM. Headquartered in Florida, FIS serves more than 20,000 clients in more than 130 countries.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.