© Reuters. FIS (FIS) rises on report it may sell a majority stake in Worldpay; analyst positive
Private equity (PE) firms, including Advent, are reportedly considering acquiring a majority stake in Worldpay from Fidelity National Information Services (NYSE:), according to the Financial Times.
The valuation exceeds $15 billion, the report added. GTCR, a Chicago-based private equity firm, has also considered making a bid.
For Jefferies analysts, the potential transaction is a “clear positive.”
Mizuho analysts also weighed in positively on the potential deal.
The deal “cleans up legacy FIS, reviving the story of a stable, high-margin, mid-single-digit grower, reduces share-loss narrative overhang, de-levers, avoids assigning a spin-off multiple for Worldpay amid 1-2% sales declines in 2023,” the analysts said in a note.
“We expect a positive stock reaction.”
FIS shares are down 19% year-to-date through Friday’s close. The stock is up 6.1% in early Monday trading.
