FIS is set to integrate Worldpay into its business

  • This is an excerpt from a story delivered exclusively to Business Insider Intelligence Payments & Commerce subscribers.

Fidelity National Information Services (FIS), a financial services technology company, reported earnings for Q2 2019, the last full quarter prior to its acquisition of payment processor Worldpay - valued at $43 billion - which closed on July 31. The quarter saw FIS individually bring in $2.1 billion in revenue, representing flat annual growth, while Worldpay racked up $1.1 billion in revenue, which was up 7% year-over-year (YoY).

Payments And Fintech M&A ActivityBusiness Insider Intelligence

FIS, with Worldpay in tow, will boast three new business segments that will aim to leverage the combined strengths of the companies.

As the recent spate of payments megadeals close, companies' ability to integrate their businesses and take advantage of each other's strengths will be key to their success. In addition to FIS' acquisition of Worldpay, Fiserv acquired First Data, and Global Payments is merging with TSYS - the combined deals amount to $86.5 billion.

The firms are looking to diversify their businesses through consolidation, but just bringing two companies under the same roof won't automatically maximize their value. Examining the existing businesses and finding opportunities where the capabilities of one complement or strengthen the other's can make the combined company more attractive than competitors.

This makes the early days of integration incredibly important because once new organizational segments and structures are created, they can be difficult to change quickly. Additionally, these integrations could influence whether partners from before the acquisitions and mergers elect to continue working with the combined companies; Bank of America already announced the end of its joint venture with First Data following that company's acquisition by Fiserv.

Interested in getting the full story? Here are three ways to get access:

  1. Sign up for Payments & Commerce Pro, Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >>
{{}}