FIS Acquisition of Payrix Expands Its E-Commerce, Embedded Payments and Finance Experiences for SMB Merchants via Platforms

Rhea-AI Summary

FIS has acquired Payrix, a fintech firm specializing in embedded payments, to enhance its e-commerce offerings for small- and medium-sized businesses (SMBs). Founded in 2015, Payrix's expertise in automated underwriting and onboarding will be combined with FIS's global payment capabilities to facilitate market expansion and improve financial services. While the terms of the deal remain undisclosed, FIS anticipates no material impact on its upcoming financial results.

Positive

• Acquisition of Payrix enhances FIS's embedded payments strategy and accelerates e-commerce growth for SMBs.
• Combined capabilities of FIS and Payrix will allow businesses to expand globally at scale.

Negative

• None.

Key facts

• The acquisition allows FIS to enhance embedded payments and finance experiences for small- and medium- sized businesses (SMBs) in any industry, accelerating the company’s fast-growing e-commerce business.
• Founded in 2015, Payrix specializes in providing embedded payments solutions into SaaS-based platforms to serve SMB e-commerce merchants.
• FIS will further capitalize on the fast-growing demand for embedded finance capabilities by combining Payrix’s industry-leading automated underwriting and onboarding capabilities with Worldpay from FIS’ best-in-class global payment capabilities allowing any size business to go global at scale.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Financial technology leader FIS^® (NYSE: FIS) announces it has enhanced its embedded payments strategy with the acquisition of Atlanta-based, Payrix. This acquisition aligns with FIS’ strategy to expand its e-commerce offerings to companies of all sizes, and in any industry, by embedding payments capabilities within Software-as-a-Service (SaaS) platforms. This acquisition will also enable FIS to unlock the value of its broad solution portfolio by delivering embedded finance capabilities in addition to its e-commerce offerings to small- and medium- sized businesses (SMBs).

Founded in 2015, Payrix is an innovative fintech company that specializes in enabling SaaS-based platforms to embed payments and financial technology into their offerings to enhance the payments experience for SMBs.

An industry leader in deposit, lending, issuing, B2B and global payments solutions, FIS will leverage and combine its portfolio of banking and payments assets with Payrix’s advanced embedded payments solutions to create new and differentiated experiences for any size business.

“Since acquiring Worldpay in 2019, FIS continues to expand its strategic payments capabilities and offerings in global e-commerce,” said Stephanie Ferris, President, FIS. “Bringing the Payrix capabilities inside FIS enables us to continue our journey of serving e-commerce as well as platform companies. The acquisition of Payrix is an excellent proof point of FIS’ ability to unlock the value of our broad portfolio of solutions as companies of all sizes rely on FIS as a destination for innovation to advance how the world pays, banks and invests.”

Supporting FIS’ track record of value-creating acquisitions, the acquisition of Payrix creates a differentiated solution for platforms looking to embed payments, allowing them to go global, at scale. It also delivers new capabilities including fully digital and automated onboarding, compliance, billing and settlement, enabling FIS to quickly expand into new market segments, especially the high growth SMB e-commerce segment.

Terms of the deal are not disclosed. The acquisition is not expected to be material to FIS’ financial results to be announced on Feb. 15.

Payrix was acquired from an investor group led by Blue Star Innovation Partners, a Dallas-based investment fund and Providence Strategic Growth (PSG), the growth equity affiliate of global asset management firm Providence Equity Partners.

About FIS

FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor’s 500® Index.

To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).

View source version on businesswire.com: https://www.businesswire.com/news/home/20220214005320/en/

Kim Snider, +1 904.438.6278

Senior Vice President

FIS Global Marketing and Communications

kim.snider@fisglobal.com



Nathan Rozof, CFA, 904.438.6918

Executive Vice President

FIS Corporate Finance and Investor Relations

Nathan.Rozof@fisglobal.com

Source: Fidelity National Information Services

FAQ

What is the purpose of FIS acquiring Payrix?

The acquisition aims to enhance FIS's embedded payments strategy and expand e-commerce services for small- and medium-sized businesses.

When was the acquisition of Payrix announced by FIS?

FIS announced the acquisition of Payrix on February 14, 2022.

How will the acquisition of Payrix impact FIS's financial performance?

The acquisition is not expected to be material to FIS’s financial results, which will be reported on February 15.

Who were the previous investors of Payrix before the acquisition?

Payrix was acquired from an investor group led by Blue Star Innovation Partners and Providence Strategic Growth.

What are the expected benefits of the Payrix acquisition for SMBs?

The acquisition is expected to provide SMBs with improved embedded finance capabilities and a better payments experience.