US firm Van­tiv agrees tie-up with World­pay

Kuwait Times - - BUSINESS -


US pay­ment pro­cess­ing gi­ant Van­tiv has agreed to take over Bri­tish peer World­pay, the pair said yes­ter­day, to cre­ate a global gi­ant worth $27 bil­lion. The deal was billed as a merger, with World­pay share­hold­ers own­ing 41 per­cent of the new group, whose cur­rent com­bined stock mar­ket cap­i­tal­i­sa­tion is the equiv­a­lent of about 24 bil­lion eu­ros in­clud­ing debt. Un­der the cash-and-shares deal, Van­tiv is pay­ing around $11 bil­lion in­clud­ing debt for World­pay.

"The boards of di­rec­tors World­pay and Van­tiv Inc. are pleased to an­nounce that they have reached an agree­ment in prin­ci­ple on the key terms of a po­ten­tial merger," the pair said in a state­ment. The news came one day af­ter World­pay's share price rock­eted on news it had re­ceived takeover ap­proaches from both Van­tiv and bank­ing gi­ant JPMor­gan Chase. The lat­ter yes­ter­day said it would not come back with a for­mal ri­val of­fer for World­pay. "The boards of World­pay and Van­tiv see com­pelling strate­gic, com­mer­cial and fi­nan­cial ra­tio­nale for com­bin­ing World­pay and Van­tiv's com­ple­men­tary busi­nesses," they added yes­ter­day.

"The... merger cre­ates a scale world class pay­ments group in a dy­namic mar­ket, with deep pay­ments ca­pa­bil­i­ties, prod­uct and ver­ti­cal ex­per­tise and strong dis­tri­bu­tion chan­nels to serve mer­chants around the world in the global ecom­merce mar­ket, and in-store and on­line in the UK and US mar­kets." The two com­pa­nies added that "sub­stan­tial op­por­tu­ni­ties" for cost sav­ings had been iden­ti­fied. World­pay has 400,000 cus­tomers and was owned by the Royal Bank of Scot­land un­til the state-backed lender sold off its re­main­ing stake to pri­vate equity firms Ad­vent In­ter­na­tional and Bain Cap­i­tal in 2013. Two years later, the com­pany sealed the big­gest flota­tion of 2015 when it listed on the Lon­don Stock Ex­change. — AFP

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