Worldpay Upgraded After FIS Deal

Morningstar analysts like the deal from Worldpay's point of view but don’t see the merger as materially strengthening its competitive position

Brett Horn 19 March, 2019 | 3:43PM
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Worldpay merger with FIS

Shares in payment processing giant Worldpay (WP) surged yesterday on news of a merger with FIS (FIS), valuing the deal at $43 billion. This merger follows closely on the Fiserv and First Data combination and suggests that FIS didn’t want to be left behind following its peers' big move.

We are increasing our fair value estimate for Worldpay to $111 per share from $93. Our new fair value estimate is based on the current market value of the FIS shares and the cash offered in the merger, as we believe this deal is likely to be completed. If the deal falls through, our standalone for Worldpay is $93 per share.

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Brett Horn  Brett Horn is an associate director in the equity research department.