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M&A Overview

M&A momentum pursues this past couple weeks as several new deal announcements shake up the payments industry. To kick things off, FIS has announced their intention to spin-off Worldpay as a separate business. This announcement comes nearly four years after their $43 billion acquisition of the company. Worldpay’s former CEO, Charles Drucker, will lead the separation of the business and will be named as CEO following the spin-off. FIS expects this process to be completed within the next 12 months. Separately, Global Payments has entered into a definitive agreement with Parthenon Capital to sell off its gaming division for approximately $415 million. Following this transaction, Parthenon Capital will rebrand the unit as Pavilion Payments and establish it as a stand-alone independent company. This acquisition is expected to be completed by the end of March.

In other M&A news, REPAY announced last week their agreement to sell Blue Cow Software, an ISV focused on the fuel and propane industry, to PDI Technologies. Blue Cow was a subsidiary of BillingTree, which REPAY acquired back in 2021. This acquisition totaled approximately $41 million in cash, which REPAY intends to use to reinvest in the business to drive more organic growth and reduce net leverage.

 

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