£9.3bn tech pioneer falls to US predator

BOSSES at British financial pioneer Worldpay have struck a £9.3bn deal to be bought by a US rival after a last-minute management struggle.

After weeks of negotiations shrouded in secrecy the digital payments firm yesterday said it would finally accept an offer to merge with Cincinnati-based Vantiv.

The company has won several concessions from its American suitor, including a beefed-up boardroom presence for Worldpay executives and a bigger slice of the new company for its shareholders.

However, the headquarters of the firm will be in the US, with London used as an international headquarters. The firm, to be known as Worldpay, will have a dual stock market listing in the UK and New York.

Worldpay chief executive Philip Jansen and Vantiv boss Charles Drucker will be co- chief executives but Drucker will ultimately be in charge, with the added title of executive chairman. This means that the firm will have no non- executive chairman, which is seen as a crucial mark of good corporate governance.

Current Worldpay chairman and City veteran Sir Michael Rake is set to become the lead director of the new 13-person board, which will now include five Worldpay executives instead of four.

Worldpay bosses said British jobs and facilities would be largely protected. Vice- chairman Ron Kalifa claimed there were ‘no sticking points’ in discussions with Vantiv and rejected suggestions the firm should give written guarantees that British jobs would be protected, saying similar pledges made by Japan’s Softbank when it bought chip maker Arm Holdings were because of a different situation.

The majority of job losses are expected to fall on Worldpay’s US division. Kalifa added: ‘I don’t anticipate any job losses of any scale in the UK, simply because there is no overlap, but some head office jobs that exist here and in Vantiv inevitably will merge because that is the way good businesses operate.’

There were no plans to ditch the company’s centres in London, Cambridge, Manchester or Gateshead, he said.

Vantiv has agreed to pay 397p for each Worldpay share – about £8bn in total – as well as £1.3bn to cover debts.

The deal could net executives about £83.5m, with Jansen getting about £29.5m.