The American company for credit card processors and POS solution provider for businesses of all sizes named Vantiv have publicly announced the merging with the British payment (online, card machines and telephone payments) processing firm Worldpay for a sum of £8 billion.
Vantiv has announced on their website Vantiv.com:”Vantiv and Worldpay have come together with unmatched capabilities to drive seamless global commerce – any payment, anyway, the world over”.
The joined business will operate under the name Worldpay Inc., with Vantiv boss Charles Drucker as a Co-Chief Executive Officer and Executive Chairman of Worldpay. He joined the company in 2004 as President of Vantiv where he was named CEO in 2009, while Worldpay’s Philip Jansen will continue as a Co-Chief Executive Officer from January 2018, and is also currently Senior Advisor to Bain Capital. Previously, he was CEO of Worldpay Group PLC from April 2013, having been CEO of Brakes Group and non-executive director of Travis Perkins PLC, he will report directly to Drucker.
The main premises of Worldpay Inc will be in Cincinnati, as for the stock market listings, they will appear on both Wall Street’s NASDAQ and the London Stock Exchange.
The mechanics of the deal, which is valued at 397p per share, including a 55p cash payment, an interim dividend of 0.8p, a special 4.2p dividend, and company shareholders will be given 0.0672 of a new share in Vantiv. In the wake of the deal’s agreement, shares in Worldpay closed at 388.5p per share, rising 1.28% from the same time on Tuesday.
Comments on the matter
In the great public announcement, the Vantiv boss Charles Drucker, said: “Our combination is transformative for our colleagues, customers, and the worldwide payments industry.
“We would not be here without the enthusiasm, dedication and hard work of all our people, who will continue to forge the future of payments. By combining the expertise of our teams, we will provide further value to our customers, helping them prosper in the fast-changing and complex digital economy.”
However, with joined net income of more than $3.2 billion, they will have more than 40 billion transactions with more than 300 payment methods in 126 global currencies and across 146 countries.
When the deal will enter in the last phase both companies will create a transatlantic payments business worth an estimated $31bn, deal with a large sum of over US$1.5 trillion in payment volume.
On the board of the combined company, five directors will serve all together with Mike Rake, Worldpay’s non-executive chairman, becoming lead director. Current Vantiv CFO Stephanie Ferris will become the new CFO of Worldpay Inc, also report to executive chairman Charles Drucker.
The new co-CEO, Philip Jansen said: “The new senior leadership team is in place and has already begun to implement our plan to integrate the two businesses, delivering new value for customers, realizing cost synergies and capturing revenue opportunities that will benefit our shareholders.
“This will be evidenced as Worldpay creates customer-centric innovation at scale, leveraging our combined operations, technology infrastructure and data and analytics capabilities. Charles and I look forward to delivering this value to our customers across the world.”