Global Payments Reshapes Itself With Worldpay Deal and Strategic Exit

Global Payments Inc. GPN is stepping into an exciting new chapter after wrapping up a complex three-way deal that significantly reshapes its business model. The company has successfully acquired Worldpay while also selling off its Issuer Solutions unit to Fidelity National Information Services, Inc. FIS. This move effectively turns GPN into a dedicated provider of commerce and merchant solutions.

With the Worldpay acquisition now closed, GPN gains meaningful scale and geographic breadth. The combined entity will serve over 6 million merchant locations, process $3.7 trillion in payment volume and around 94 billion transactions annually across more than 175 countries. Meanwhile, the merger combines their unique strengths — Global Payments brings robust SMB and integrated software capabilities, while Worldpay adds its extensive enterprise and e-commerce know-how. This partnership boosts the company’s ability to support merchants at every stage of their growth journey, from small businesses to large global enterprises.

The divestiture of Issuer Solutions marks a deliberate strategic pivot. By exiting issuer processing, Global Payments sharpens its focus on merchant-facing commerce solutions, where secular growth trends such as digital payments, omnichannel commerce and embedded finance remain strong. This streamlined approach not only enhances capital efficiency but also aligns with the company’s goal of investing over $1 billion each year in innovation while gradually reducing debt on the balance sheet.

Also, GTCR, a leading private equity firm, exits its ownership of Worldpay while retaining an equity stake in Global Payments, maintaining exposure to future value creation. For FIS, acquiring Issuer Solutions alongside the sale of its remaining Worldpay interest allows it to sharpen its focus on issuer processing, data analytics, loyalty programs and AI-driven services, all while enhancing revenue visibility and improving cash flow quality.

Looking ahead, the success of this reset will depend more on how well it's executed. GPN’s ability to deliver seamless integration, retain large enterprise clients and unlock cross-selling opportunities will determine whether the transaction translates into sustained earnings growth. If executed well, the streamlined operating model and clearer strategic focus could lead to stronger cash flows and enhance the company’s competitive edge in the near term.

GPN’s Price Performance

Over the past six months, GPN shares have risen 0.2% against the industry’s decline of 10.5%.

GPN’s Zacks Rank & Other Key Picks

GPN currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the business services space are Maximus, Inc. MMS and Dave Inc. DAVE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Maximus’ current-year earnings of $8.19 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Maximus beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 29.3%. The consensus estimate for current-year revenues is pegged at $5.5 billion, implying 1.6% year-over-year growth.

The Zacks Consensus Estimate for Dave’s current-year earnings of $12.96 per share has remained stable over the past 60 days. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 74.7%. The consensus estimate for current-year revenues is pegged at $546.1 million, implying 57.3% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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