Wednesday, 9 August 2017

Worldpay formally agrees £9.3bn takeover by US rival

UK-based payments processing firm Worldpay has formally agreed to a £9.3bn takeover by US rival Vantiv.

The deal creates a global giant with a combined value of £22.2bn, 57% owned by Vantiv shareholders and 43% by those currently holding Worldpay stock.

It will see Vantiv pay £8bn for the company plus £1.3bn to cover debts.

The deal is subject to regulatory and shareholder approval and is expected to complete early next year.

Worldpay, set up in 1989, was part of Royal Bank of Scotland before being spun out to private equity ownership under EU state aid rules after the bank's £45bn bail-out following the financial crisis.

It was floated on the London stock market in 2015 with an initial valuation of £4.8bn and the new company formed out of the takeover - which will keep the Worldpay name - will retain a secondary listing in the capital, though its main listing will be in New York.

The formal announcement of the takeover disclosed that Vantiv had been eyeing a deal since even before that flotation and that the two companies held abortive talks early last year, before reviving discussions this summer.

An initial agreement was reached in July but the companies spent several weeks ironing out further details.

The new group's global and corporate headquarters will be in Cincinatti, Ohio, though it will have its international HQ in London and the combined company will be named Worldpay.

It will be led by Vantiv's Charles Drucker as executive chairman and co-chief executive, with Worldpay's current boss Philip Jansen as co-chief executive.

SKY      News.