US financial technology service provider Fidelity (FIS) hasÂ acquiredÂ UK payment processing company WorldPay forÂ US$43 billionÂ , makingÂ this transactionÂ the largest in the data processing and payment industry.Â After the news was released, WorldPay’s share price rose by nearly 10%, and Fidelity’s share price fell slightly, falling by nearly 1%.
In the $43 billion acquisition, Fidelity will assume WorldPay’s $7.7 billion in debt.Â Upon completion of the acquisition, Fidelity will own 53% of the shares and other investors of WorldPay will hold the remaining shares.Â Fidelity said thatÂ after the merger, the two companies will mainly serve the high-growth e-commerce industry.
WorldPayÂ was first founded in 1997.Â Over the past 20 years,Â WorldPayÂ has been expanding its business through acquisitions.
At the beginning of its establishment, WorldPay mainly provided online money payment system services, mainly providing technical support for the bank’s networked storage and credit business. The main customer was the British National Westminster Bank.
After taking over the National Westminster Bank, Royal Bank of Scotland acquired WorldPay and acquired at least seven payment solution providers in the US and the Netherlands to expand WorldPay’s business. After the 2008 financial crisis, the EU assisted the Royal Bank of Scotland in accepting the European Union and asked it to divest the WorldPay business.
In 2010, private equity firms Yavit International and Bain Capital jointly acquired WorldPay at a price of 2 billion pounds (about 2.7 billion US dollars). After the completion of the acquisition, each party holds 40% of WorldPay.Â Yavit International and Bain Capital continue to support WorldPay’s expansion in the form of acquisitions.Â After acquiring the UK’s established credit card online financial services provider Cardsave and e-commerce online payment system technology service provider Envoy Services, WorldPay became the UK’s largest online payment provider and was listed on the London Stock Exchange in 2015.Â In 2017, it was againÂ acquiredÂ by the US payment companyÂ VantivÂ for Â£8 billion (about $10.6 billion)Â .