US-based fintech company Fidelity National Information Services (FIS) is reportedly planning to divest its Worldpay Merchant Solutions business for a total of $15bn.
The announcement marks a reversal of the company’s previous plans to spin off the unit.
The potential sale of its merchant business would leave FIS with a core processing systems business, which enables transactions among banks and other financial institutions, along with its capital markets division serving investment firms.
According to a Reuters report, private equity firms GTCR and Advent International are competing for the merchant solutions business.
GTCR is currently in advanced talks to acquire a majority stake in Worldpay for consideration between $15bn and $20bn.
The Chicago-based private equity company plans to finance half of the deal through equity financing and half through borrowing.
In 2019, FIS acquired UK-based payment processing company Worldpay for $43bn.
Earlier this year, the financial services technology company announced its plans to spin off Worldpay as an independent company, to strengthen its strategic and operational focus.
FIS’ merchant solutions business accounts for about 30% of the company’s revenue, while its banking technology unit generates about 46%, and capital markets the remainder.
In December last year, FIS launched a strategic review of its operations following pressure from hedge funds D.E. Shaw and Jana Partners.
Following the review, the company announced that it will pursue a tax-free spin-off of its merchant business and disclosed a $17.6 billion write-down related to the Worldpay acquisition.
GTCR manages more than $35bn in assets and invests across sectors, including financial services, and has raised $11.5bn from investors in May this year.
The company’s previous deals in the financial technology sector includes the acquisition of mortgage software firm Optimal Blue and its sale to Black Knight in 2020 for $1.8bn.
