The Daily Telegraph

Worldpay chief admits deal will lead to job losses

- By Lucy Burton

WORLDPAY’S chief executive has admitted that its £9.3bn acquisitio­n by US rival Vantiv will “inevitably” lead to job losses among its combined 8,700 workforce, with the axe most likely to fall on those based in the US.

Vantiv’s takeover offer has finally been accepted by Worldpay’s board after the British company was granted a second extension to talks this week.

The deal will see the Ohio-based card processor pay 397p per share for the business, a 23pc premium on its closing price when the deal first emerged a month ago.

Vantiv is targeting cost synergies of $200m (£153.7m), with Philip Jansen, Worldpay chief executive, who will cohead the enlarged company, confirming that the deal would lead to job cuts.

There is no guarantee that UK jobs will be protected but Mr Jansen said most of the losses were likely to come from the US, where the companies have targeted 63pc of all cost savings. The new payment giant, which will keep the Worldpay name and have a market capitalisa­tion of around £22bn, will have its global HQ in Cincinnati and its internatio­nal HQ in London.

Mr Jansen put the delays down to “working through the mechanics” of the mega-merger, a sentiment echoed by Charles Drucker, Vantiv’s chief.

The company, which will be 43pc owned by Worldpay shareholde­rs, will be led by Mr Drucker as executive chairman and co-chief executive alongside Mr Jansen.

The move comes just two years after Worldpay listed in London and seven years after it was sold by the Royal Bank of Scotland to Bain Capital and Advent at the behest of a European Union diktat in the wake of its Government bail-out in 2008.

The announceme­nt came as Worldpay released its half-year results showing an 18pc growth in revenues and a 9pc jump in underlying pre-tax profits.

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