Worldpay share price steady as group agrees merger deal with Vantiv

on Aug 9, 2017

Shares in Worldpay Group (LON:WPG) have climbed into positive territory in London this morning, as the company agreed the terms of a merger with US credit card payment processor Vantiv. The news came as the FTSE 100 company, which floated on the London Stock Exchange about two years ago, updated investors on its interim performance, posting a rise in revenue and profits.

As of 08:16 BST, Worldpay’s share price had added 0.63 percent to 386.00p, outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.59 percent lower at 7,498.04 points. The group’s shares have added just under 43 percent to their value in the year-to-date, as compared with a near five-percent rise in the Footsie.

Worldpay and Vantiv announced in a statement this morning that they had agreed the terms of a tie-up which will see shareholders in the UK group hold 43 percent of the combined company. The terms of the merger imply an enterprise value of Worldpay of approximately £9.3 billion, while the combined company will have a pro forma enterprise value of about £22.2 billion.

The combined company, which will retain the Worldpay name, will have its global headquarters in Cincinnati and its international headquarters in London. The enlarged group will have a primary listing on the New York Stock Exchange, and Vantiv will seek a secondary listing in London.

The Financial Times noted in its coverage of the news that the terms of the deal have been subject to delays after Worldpay investors raised concerns in recent weeks over the valuation of the company and whether it would be listed in London.

Worldpay separately updated investors on its interim performance today, posting an 18-percent rise in revenue to £2.5 billion, and a 14-percent gain in underlying earnings to £247.5 million.

“We delivered a strong first half performance, further extending our long-term track record of substantial growth,” the group’s chief executive Philip Jansen commented in the statement. “Today, I am pleased to announce our recommended merger with Vantiv.  The combination of scale and presence that the merger will bring is an exciting step in the creation of a truly global leader in payments.”