US credit card processor Vantiv has agreed to merge with Worldpay, a British payment processing company, as part of a deal worth around £9.3bn. Vantiv will pay £8bn for shares in Worldpay and £1.3bn to cover debts.
Upon closure of the merger, Vantiv shareholders will own approximately 57 per cent of the combined shares, and Worldpay shareholders the other 42 per cent. The deal will create a company with an enterprise value of £22.2bn.
“This is a powerful combination that is strategically compelling for both companies. It joins two highly complementary businesses, and it will allow us to achieve even more together than either organization could accomplish on its own,” said Charles Drucker, president and CEO of Vantiv.
Through the combination, the pair hope to create a global payment provider ‘to power omni-channel commerce, with comprehensive products and capabilities spanning traditional merchants, integrated payments and global eCommerce’.
Expected to close in early 2018, the deal will also see Cincinnati, Ohio become the combined company’s global and corporate headquarters, while London will become its international headquarters.
Worldpay, as the combined company will be known, will be led by Drucker as executive chairman and co-CEO. He will be reported to by co-CEO Phillip Jansen and CFO Stephanie Ferris, with additional executive members being announced at a later date. The board will consist of five Worldpay directors and eight Vantiv directors.
“This is a merger of two world class payment companies, which will create a global omni-commerce leader, with substantial opportunities to capitalize on the rapid evolution of payments,” said Jansen, CEO of Worldpay.