May 23, 2018

Worldpay and Vantiv agree terms on £9.3bn merger

10 August 2017, 01:09 | Kenneth Drake

Worldpay is Britain's largest payment processor and sells technology to businesses so they can take payments via cards online or on mobile devices

Worldpay is Britain's largest payment processor and sells technology to businesses so they can take payments via cards online or on mobile devices

Shares in Worldpay Group (LON:WPG) have climbed into positive territory in London this morning, as the company agreed the terms of a merger with United States credit card payment processor Vantiv.

The combined company will be named Worldpay, but will be headquartered in Cincinnati (Ohio).

Newly created shares will be listed on both the NY and London stock exchanges.

However, the USA suitor is keen to flag the merger with its British target in a positive light, and not just another American swoop for United Kingdom company in light of a lower post-Brexit pound sterling.

In a legal filing with the US Securities Exchange Commission, Vantiv said it will pay $10.4 billion to acquire Worldpay, and upon completion, the combined company will take on the Worldpay moniker. Wordplay also raised its interim dividend by 23% from previous year to 0.80p for the first six months of 2017.

Assuming the deal passes shareholder and regulatory approval, which is expected sometime in early 2018, 43 percent of the new company will be owned by existing Worldpay shareholders and 57 percent by Vantiv shareholders.

"This is a powerful combination that is strategically compelling for both companies", added Vantiv CEO and president Charles Drucker.

"It joins two highly complementary businesses, and will allow us to achieve even more together than either organisation could accomplish on its own". Philip Jansen, the Worldpay chief executive, will be co-chief executive reporting to Mr... The board will consist of five Worldpay directors and eight Vantiv directors.

Jansen said: "The growth of eCommerce and the way consumers expect to transact is increasing complexity for businesses around the world". This represents a premium of 34% over Worldpay's six-month volume weighted average price. Paysafe Group last week was agreed to be bought by Blackstone Group and CVC Capital Partners for $3.9 billion, while several buyout firms are considering bids for Danish payment-services company Nets A/S. Underlying earnings rose by 14% from the same period past year, on an 18% rise in revenue.

Alongside the announcement, Worldpay reported its first half results.

Worldpay said "positive discussions" are continuing between the two companies as they thrash out the final details.

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