The largest payment processor of Britain, Worldpay Group Plc, claimed this week that it had decided to be purchased by Vantiv Inc., the U.S. credit card tech company, in a contract. The value of this deal came at 7.7 Billion Pounds ($9.95 Billion).
The deal came a day post stakes in the British company grew over 25% when it said it had got approaches from both JPMorgan and Vantiv, even though the U.S. bank said last week that it does not plan to put an offer. The agreement, seen by experts as the beginning of a trend for combinations in the payments market, will witness Vantiv offer Worldpay stake holders 55 Pence in cash for each share in addition to a cash dividend of 5 Pence for each Worldpay stake plus 0.0672 latest Vantiv stakes.
That makes the overall worth for Worldpay stake holders 385 Pence for each share, a premium of 18.9% to the company’s stock closed this week, but down from the high of 409.5 Pence the stake price hit the same week prior to the declaration of agreement. If the agreement goes through, Worldpay stake holders will possess almost 41% of the new company, with the British company delisted from stock market of London. Charles Drucker, Chief of Vantiv, and Philip Jansen, CEO of Worldpay, will mutually operate the new firm.
The deal comes less than 2 Years post Worldpay listed in late 2015 in London, when it was worth 4.8 Billion Pounds. Established in 1989, Worldpay was rolled out of Royal Bank of Scotland, the British bank, to private equity company Advent International and Bain Capital in 2010. Payment firms have become striking targets for banks, credit card companies, and technology companies looking to capitalize on the drop in cash transactions and rise in popularity of paying by mobile devices and smartphones.
While banks have been attempting to buy and develop more complicated technology, payment service firms such as Worldpay and PayPal received a huge part of the industry share at the time of the e-commerce boom. Nets A/S, a Danish payment services firm, claimed this week that it had also been asked by probable buyers.