US-based fintech firm FIS has agreed to buy British payment processor Worldpay in a cash-stock transaction valued at around $43bn.
The combined group will provide payments, enterprise banking, capital markets, and global e-commerce capabilities.
It will have nearly $12.3bn pro forma 2018 annual revenue.
As per the agreed terms of the transaction, which includes the assumption of debt, Worldpay shareholders will be entitled to receive 0.9287 FIS shares and $11 in cash for each share held.
Shareholders of FIS will hold a 53% stake in the merged entity, while Worldpay shareholders will own the remainder.
The combined company will be based in Florida and operate under the FIS brand.
Worldpay executive chairman and CEO Charles Drucker said: “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.
“Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally.”
The deal is said to be mutually beneficial, with FIS expecting $500m of revenue synergies.
On the other hand, it is said to facilitate Worldpay’s foray into new markets.
The deal is expected to be completed in the second half of this year. It is currently pending shareholder and regulatory nod.
FIS chairman, president and CEO Gary Norcross said: “As a combined organisation, we will bring the most modern solutions targeted at the highest growth markets.
“The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees.”
The board of the merged group will include seven representatives from FIS and five from Worldpay.
Norcross will remain the chairman, while Drucker will become executive vice chairman of the board.