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Fidelity National Information Servcs Inc (NYSE: FIS) and Global Payments Inc (NYSE: GPN) were in talks for a merger deal valued at roughly $70 billion, but it was unsuccessful, the Wall Street Journal reports.
What Happened: The deal talks between the two fintech companies were in advanced stages before it fell through, WSJ notes. The negotiations broke down in the last few days, and the cause of the falter remains unknown.
GPN has a market cap of $59 billion, and FIS has a market cap of $90 billion. The deal could've been the biggest one this year.
Reportedly, there is no re-negotiation prospect immediately, but it could be revived later, according to people familiar with the matter.
Why It Matters: The consolidation in the fintech space comes as the established companies seek to gain market share from the startups.
GPN provides technology and point-of-sale services to merchants. FIS merchant-facing business accounts for 20% of its total revenue, and a combination with GPN would have expanded FIS's reach.
As per WSJ, both companies' chief executive officers are experienced dealmakers and influential figures in the fintech space. FIS's Gary Norcross has been open about the prospect of growing through acquisitions.
A deal between these two big players could have regulatory hurdles.
Price Action: On Friday, FIS shares closed 0.51% lower at $145.22, GPN shares closed 0.47% higher at $196.33.
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