Two U.S. Payments companies, FidelityNational and Global Payments, are in talks to acquire each other for up to $70 billion, the Wall Street Journal reported. But not so long ago, the talks finally failed, meaning that the entire US payment market would be involved in the payment merger. If the talks had been successful, they would have been announced last week.
The journal quotes officials as saying the fact that talks are taking place means the merger trend is continuing. But the Wall Street Journal notes that deals have been erratic this year. The deal between FidelityNational and Global Payments will be welcomed on Wall Street not only because it represents the biggest M&A deal of 2020, but also because it will help push valuations in the Global Payments sector to the highest levels.
It is understood that FidelityNational is currently valued at about $90 billion, while Global Payments are about $59 billion, which would set a new record for the largest payment merger in the world.
Media quoted people familiar with the matter as saying that although a resumption of merger talks is unlikely in the near future, the discussions between the two companies are at an early stage and could fail, they could still resume at a later date.
FidelityNational and Global Payments in the United States are both active in the aspect of payment acquisition. FidelityNational had 55,000 employees when it acquired Worldpay, a global e-commerce and payment technology company, for $35 billion in cash and stock in August 2019.
Source: The Wall Street Journal and other media