Payments company Worldline to buy rival Ingenico in €7.8bn deal
Worldline has agreed to buy French rival Ingenico, creating a new global payments player in a rapidly-consolidating industry in a €7.8bn (£6.6bn) deal.
The two companies said the deal would create a new European leader in the sector and the world’s fourth largest payment services provider, which would provide services to nearly one million merchants and would have combined revenues of €5.3bn in 2019.
The takeover of Ingenico gives the group an implied equity value of €7.8bn. Ingenico shareholders can expect to receive €123.10 per share — a premium of 17 per cent on Friday’s closing price — or a mixture of cash and shares.
The deal will leave Worldline shareholders owning 65 per cent of the combined group and Ingenico owning 35 per cent, the companies said.
The purchase by Worldline, which was spun out from French IT company Atos, is the latest in a series of deals in the sector, as companies seek to capitalise on the rapid growth of mobile payments.
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The payments industry is set to reach $3 trillion in annual revenue by 2023, according to McKinsey.
Worldline and Ingenico said the expect the deal, which requires regulatory approval, to close in the third quarter of 2020.
Ingenico shares jumped as much as 12.4 per cent to €118.25 euros following the announcement, while Worldline shares fell just over three per cent, reflecting some concerns that Worldline is paying a hefty premium to buy Ingenico.
Worldline said the deal would give it access to Ingenico’s strong presence in the travel, health and retail sectors, while the combined company would have a bigger geographic reach and an extended partnership with German banks.
Atos, which still holds a 16.9 per cent equity stake in Worldline, said it welcomed the deal and would continue to sell down its stake in the company.