FIS rises on report it may sell a majority stake in Worldpay; analysts positive © 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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here