Worldpay board backs £7.7bn Vantiv takeover as JPMorgan exits


Shares in Worldpay (LON:WPG) have slipped into the red in today's session, as the London-listed payments processor agreed a £7.7-billion takeover deal with United States credit card technology company Vantiv.

Worldpay said on Tuesday that it had received rival bid approaches from Vantiv and JPMorgan Chase Bank (JPM.N), sending its shares to a record high.

Upon completion Worldpay Shares will be delisted from the London Stock Exchange with common stock traded on the New York Stock Exchange.

Following the potential merger, Worldpay shareholders would own approximately 41 percent of the share capital of the newly combined group. Worldpay shareholders will also get a cash dividend of 5 pence per share.

That bid puts the value of the company at 7.7 billion pounds.

Vantiv and Worldpay said they have identified "substantial" opportunities for cost synergies, without disclosing how much or where they are.

Vantiv's Charles Drucker will become executive chairman and co-chief executive.

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Vantiv has until August 1 to make a firm offer, according to takeover rules.

A provider of payments processing technology and solutions, Worldpay bills itself as a pioneer in multi-currency processing, card payments and online and contactless payments.

Investment bank JP Morgan, the other possible bidder named yesterday, soon after announced that it had ended its interest.

"We believe Worldpay is a unique asset and the current interest from two USA peers could also trigger the intention of parties like Google, Amazon, Apple", a note from Mediobanca Securities said.

Vantiv's acquisition of Worldpay "fits in very nicely against this backdrop" said Beck, who outlined the logic of the deal in a February note. Gordon Smith, chief executive officer of the bank's consumer-banking division, said last month that the MCX deal was "something we'd like to do more of, to look for technologies that we can acquire that will facilitate and accelerate our growth".

"In 2015 we floated on the London Stock Exchange and went straight into the FTSE 100".

It provides payment services for point of sale transactions, and internet and mail order retailers.