FIS issued Q1 outlook, reaffirmed 2025 guidance after transactions

FIS (FIS) on Thursday morning entered into a definitive agreement to acquire 100% of Global Payments’ (GPN) Issuer Solutions business for an enterprise value of $13.5B, or a net purchase price of $12B including $1.5B of anticipated net present value of tax assets. Concurrently, FIS has entered into a definitive agreement to sell its stake in Worldpay to Global Payments for $6.6B in pre-tax value. “This transaction accelerates the monetization of the Company’s minority stake in Worldpay,” FIS said in a statement. The company will continue to execute against its existing capital allocation priorities in 2025, including an M&A spend of up to $1B and share repurchases of $1.2B. FIS expects to maintain its dividend policy of annual dividend per share growth consistent with adjusted earnings growth. Based on currently available information, FIS expects Q1 revenue of $2.5B, with adjusted revenue growth and recurring revenue growth of approximately 4%. It sees banking adjusted revenue growth of approximately 2%, which was above the high-end of the outlook, with recurring revenue growing 3%. FIS expects adjusted earnings per share of approximately $1.21, which was also toward the high-end of its. outlook. The consensus estimate for revenue is $2.5B and earnings per share is $1.20. The company reaffirmed its prior 2025 outlook for adjusted revenue growth, adjusted EBITDA and adjusted earnings.