Why Fidelity National Information Shares Are Gaining Today

Private equity groups are considering purchasing a majority stake in Worldpay from Fidelity National Information Services Inc FIS at a valuation exceeding $15 billion.

Advent, a U.S. buyout firm that once owned Worldpay, is reportedly studying a bid. Another potential bidder could be Chicago-based private equity group GTCR.

If FIS accepts an offer, it would deviate from its plan announced in February to spin off Worldpay as a separate publicly traded entity, Financial Times reported.

Large Wall Street lenders are reportedly discussing the possibility of financing the deal, indicating their confidence in the venture despite previous challenges with large buyouts.

These discussions come four years after FIS acquired Worldpay for over $30 billion to establish a multifaceted fintech company offering payment processing services to large banks and merchants.

Last year, activist hedge fund DE Shaw urged FIS to review its business structure and secured a seat on FIS's board of directors in December. Another activist group, Jana Partners, also took a stake in the company.

Advent bought a majority stake in Worldpay alongside Bain Capital in 2010 and took full control in 2013.

Worldpay was sold to Vantiv in 2017 before being acquired by FIS two years later.

Charles Drucker, who led Worldpay under Bain and Advent's ownership, was appointed by FIS as a strategic adviser in February to aid with the separation process. He was named the CEO of the merchant payments business FIS planned to spin off.

Price Action: FIS shares are up 8.41% at $59.30 during the premarket session on the last check Monday.