TSYS-parent Global Payments is betting big on its $600 million synergy target as it pushes forward with the $22.7 billion acquisition of Worldpay, a move that is expected to shake up the competitive dynamics in merchant services and payments technology. The acquisition will see Global Payments divest its Issuer Solutions business to FIS for $13.5 billion, sharpening its focus as a pure-play merchant solutions provider. The combined entity will serve more than 6 million customers in 175 countries, processing $3.7 trillion in annual payment volume and 94 billion transactions — a scale that positions the company among the world’s largest payment processors. Central to the strategic rationale is an ambitious plan to realize $600 million in annual run-rate cost synergies within three years of closing. According to Global Payments, roughly a third of these savings will come from consolidating technology infrastructure and eliminating duplicative vendor and software spend. Additional synergies are expected from streamlining operations, integrating product offerings, and leveraging the expanded global footprint. The company also projects at least $200 million in annual revenue synergies from cross-selling opportunities enabled by the complementary merchant, enterprise and eCommerce capabilities of the two firms. On the company’s Q1 earnings call, CEO Cameron Bready emphasized the transformative nature of the deal: “We have a tremendous opportunity to drive substantial revenue and cost synergies from the transaction as we amplify our collective go-to-market strengths and simplify our business to become a pure-play merchant solutions provider with significantly expanded capabilities, extensive scale and greater market access. The transaction will drive an enhanced financial profile for the combined enterprise and unlock long-term value for our shareholders.” The merger will combine Global Payments’ strength in small and mid-sized businesses and vertical-specific solutions with Worldpay’s enterprise and eCommerce capabilities, creating a comprehensive commerce solutions platform that spans the full merchant spectrum.