Global Payments Bets Big on $600M Synergy From Worldpay

A $22 billion acquisition is a tough act to follow. But TSYS-parent Global Payments is betting big on its $600 million synergy target as it pushes forward with the $22.7 billion acquisition of Worldpay, a move that is expected to shake up the competitive dynamics in merchant services and payments technology.

The acquisition, announced in April and expected to close in the first half of 2026, will see Global Payments divest its Issuer Solutions business to FIS for $13.5 billion, sharpening its focus as a pure-play merchant solutions provider. The combined entity will serve more than 6 million customers in 175 countries, processing $3.7 trillion in annual payment volume and 94 billion transactions — a scale that positions the company among the world’s largest payment processors.

Central to the strategic rationale is an ambitious plan to realize $600 million in annual run-rate cost synergies within three years of closing. According to Global Payments, roughly a third of these savings will come from consolidating technology infrastructure and eliminating duplicative vendor and software spend.

Additional synergies are expected from streamlining operations, integrating product offerings, and leveraging the expanded global footprint. The company also projects at least $200 million in annual revenue synergies from cross-selling opportunities enabled by the complementary merchant, enterprise and eCommerce capabilities of the two firms.

On the company’s Q1 earnings call, CEO Cameron Bready emphasized the transformative nature of the deal: “We have a tremendous opportunity to drive substantial revenue and cost synergies from the transaction as we amplify our collective go-to-market strengths and simplify our business to become a pure-play merchant solutions provider with significantly expanded capabilities, extensive scale and greater market access. The transaction will drive an enhanced financial profile for the combined enterprise and unlock long-term value for our shareholders.”

Those earnings were lackluster. For the first quarter of 2025, Global Payments reported GAAP revenue of $2.41 billion. Adjusted operating margin expanded 70 basis points to 42.4%. The company reaffirmed its 2025 outlook for 5-6% constant currency adjusted net revenue growth and 10-11% adjusted EPS growth, signaling continued operational resilience even as it prepares for the Worldpay integration.

Global Payments, parent company of payment processors TSYS and Heartland as well as other brands, has steadily evolved through acquisitions, most recently integrating EVO Payments to expand its global reach.

Worldpay, with $4.9 billion in 2023 revenue, is a leading multinational payment processor serving merchants and financial institutions across 146 countries and 135 currencies. The merger will combine Global Payments’ strength in small and mid-sized businesses and vertical-specific solutions with Worldpay’s enterprise and eCommerce capabilities, creating a comprehensive commerce solutions platform that spans the full merchant spectrum.