Worldpay news about the company’s deal with Fidelity (NYSE:FIS) has WP stock soaring on Monday.
The news that has Worldpay (NYSE:WP) stock heading higher today is that it is merging with Fidelity. This will have FIS offering up a mix of cash and stock to purchase the company. The deal values WorldPlay at $43 billion.
Fidelity’s offer for WorldPlay will have the company offering up 0.9287 shares of FIS stock and $11.00 for each share of WP stock. Once the deal is complete, FIS shareholders will own 53% of the new company and the remaining 47% will belong to WP shareholders.
“As a combined organization, we will bring the most modern solutions targeted at the highest growth markets,” Gary Norcross, Chairman President and CEO of Fidelity, said in a statement. “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.”
Once the merger is complete, the new company’s Board of Directors will be split between the two previous companies’. This includes seven that will come from Fidelity’s Board. Another five will be from WorldPlay’s Board.
Norcross will also continue to serve as the Chairman, President and CEO of the new company. Charles Drucker, the current Executive Chairman and CEO of Worldplay, will serve as Executive Vice Chairman of the Board for the new company.
The Worldpay news notes that the two companies are aiming to close the deal during the second half of 2019.
WP stock was up 9% and FIS stock was down 1% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.