Daily Management Review

Vantiv to purchase Worldpay for $ 10.4 billion


08/09/2017


American processing company Vantiv Inc. agreed to buy Worldpay Group Plc, the operator of the largest UK payment system, for 8 billion pounds ($ 10.4 billion), reports Bloomberg.



worldpay.com
worldpay.com
Worldpay’s cost of under the transaction is estimated at 397 pence per share. Upon completion of the transaction, the combined processing company will conduct a secondary offering on the London Stock Exchange (LSE).

After the transaction, the company will be called Worldpay; its market value will reach about 22.2 billion pounds ($ 29 billion). Shareholders of Vantiv will own about 57% of the shares of the merged company.

Consolidation is accelerating in the fast-growing payment industry, as consumers are increasingly switching to online purchases and electronic payments. Last week, Blackstone Group LP and CVC Capital Partners Ltd. agreed to purchase Paysafe Group Plc for $ 3.9 billion, while Permira and Nordic Capital were among the companies that made an offer to purchase Dutch payment service Nets A/S.

Vantiv, which appeared in the 1970s. as a processing unit of Fifth Third Bancorp and was allocated to a separate company in 2012, after the transaction will improve its position in operations with Internet retailers and small businesses. The combined company will handle about 40 billion payments for a total of about $ 1.5 trillion a year.

Vantiv expects that the cost of integration and restructuring will be about $ 330 million.

"The growth in e-commerce and the way customers expect transactions, complicates business conditions around the world," said Worldpay’s CEO Philip Jansen. "The combination of scale, innovation, technology and global presence will mean that we can offer more payment solutions for business, be it large or small, global or local (companies). "

The post of general director of the joint company will be shared between Philip Jansen and the president and CEO of Vantiv, Charles Drucker. Drucker will also become the executive chairman of the company's board of directors.

source: bloomberg.com






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