Worldpay and Vantiv agree £9.3 billion takeover deal
The UK’s biggest payment processing company, Worldpay, have agreed to a proposed £9.3 billion takeover bid by the US company Vantiv. Shares have been offered at 397p, with a 1.3 billion debt making up the remainder of the deal’s valuation.
Worldpay representatives confirmed that the takeover will be beneficial for the company in terms of strategy and development, in the face of growing political concern for UK business from the weak post-Brexit pound.
Ron Kalifa, the vice-chair of Worldpay, said on the deal:
“We have had several conversations with senior members of parliament to make sure they understand the strategic rationale. We were not ready last year when the pound was in a different position. Letting this opportunity pass by would have been the worst decision for shareholders, customers, and staff.”
Commentators and politicians have been quick to question the deal, as more and more foreign investors look to benefit from the falling value of the pound, and get themselves a British bargain. This is a trend that strategists and policy planners are keen to quell, as they work on retaining’s the UK’s reputation as a node for international business.
If the deal is confirmed, the group will be renamed and have its headquarters relocated to Cincinnati where Vantiv is currently based. Worldpay handle 40% of card payments at tills in the UK. This figure is expected to rise, however, as more and more consumers come around to the use of card technologies for both online and in-store shopping.