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December 21, 2020updated 05 Apr 2022 8:19am

FIS and Global Payments end $70bn merger talks

The merger talks between the US payment behemoths FIS and Global Payments has reportedly fell apart for unknown reasons.

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Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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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.

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.

A 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.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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