Financial services technology leader FIS has revealed plans to pursue a tax-free spin-off of its Merchant Solutions business to enhance strategic and operational focus, capitalize on growth opportunities, and unlock shareholder value.
The separation aims to create two market-leading companies, with FIS remaining a leading provider of financial technology solutions, while the spun-off Merchant Solutions business will operate as Worldpay.
The move is part of FIS' broader strategy to align capital allocation, enhance talent alignment with shareholder returns, and increase agility in response to the rapidly evolving payments landscape.
The spin-off is expected to be completed within the next 12 months, and FIS and Worldpay plan to maintain a commercial relationship, preserving key value propositions for their clients. Charles Drucker, former CEO of Worldpay, has been named as a strategic advisor to aid with the separation and will become the CEO of Worldpay after the spin-off.
The proposed separation is subject to customary conditions, including final approval by the FIS Board of Directors and regulatory approvals. The company expects the move to result in two industry-leading, publicly traded entities positioned for significant value creation in their respective markets.
Worldpay will focus on providing integrated payment technology solutions, while FIS will continue to deliver financial technology solutions for financial institutions globally. The transaction details, governance, and other elements will be announced at a later date.
FIS Global