The merger talks between the US payment behemoths FIS and Global Payments has reportedly fell apart for unknown reasons.
The companies were in advanced discussions to merge, a deal that could have been valued at $70bn, The Wall Street Journal (WSJ) reported citing people familiar with the matter.
Go deeper with GlobalData
FIS and Global Payments intended to announce a deal this week, however, the negotiations faltered in the last few days.
If the merger was successful, the combined company would handle transactions worth $40bn, the report added citing Dealogic data.
It would expand FIS’ merchant business, as the Georgia-based Global Payments deals in technology and point-of-sale (POS) services for merchants.
Currently, the Florida-based FIS’ merchant business accounts for approximately 20% of its total revenue.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataA chunk of its revenue in 2019, came from providing banks with commercial lending and risk management solutions.
The deal, if passed by regulators, would result in the merger of the two largest companies in the US payments ecosystem, according to WSJ.
However, the failed merger deal, is in line with mergers and acquisitions in the industry brought to a halt in 2020 in the wake of the Covid-19 pandemic.
FIS and Global Payments facilitate merchant payments and banking technology.
FIS has nearly $90bn of market cap, while Global Payments has $50bn of market cap.
The merger talks between the payment giants may or may not get revived in the future, the WSJ report added.
FIS CEO Gary Norcross, in particular, is interested in growing through acquisitions.
Last week, FIS, through its payment processing company Worldpay, launched its token management service in collaboration with payments giant Visa.
