Published By : 10 Aug 2017 | Published By : QYRESEARCH
Vantiv, a U.S.-based credit card processing company, has secured a deal, under which, it will be procuring its Britain-based rival, Worldpay, for US$10.4 bn on Tuesday, August 09, 2017 in order to create a global payment powerhouse worth US$29 bn. This deal is said to be the biggest takeover since Brexit. Vantiv's move is a part of the current wave of payments firm mergers as customers shifting towards digital payments from cash transactions. Enterprises with a strong presence in the U.S., such as Vantiv, are scrambling to gain a global foothold in this rapidly evolving payments industry, which was once considered a backwater of banking.
The payment sector has steadily evolved as highly lucrative and is fast-growing, however, also faces strong competition from newcomers, looking to interrupt the payment methods of merchants. After the announcement of the deal on Wednesday, which marks the second largest takeover of a British firm in 2017 after the procurement of Logicor, a London-based warehouse firm, by China Investment Corp. for US$13.8 bn, the shares of Worldpay, the biggest payment provider in Britain, closed 1.28% higher at US$5.05.
The other prominent deals, recently happened in the payment sector, are the U.K.-based Paysafe Group supporting a US$3.89 bn takeover offer from a consortium of CVC Capital Partners, Blackstone, and Ingenico, a France-based payments specialist making a US$1.76 bn swoop on its Sweden-based rival Bambora. Although the deal between Vantiv and Worldpay was initially announced on July 5, 2017, it took several weeks to close, with the formal offer deadline extending twice as Worldpay and Vantiv haggled over governance and protecting British jobs.