Following weeks of negotiations, Vantiv and Britain’s Worldpay have sealed a deal for purchase. The largest U.S. merchant acquirer has agreed to part with close to 8 billion pounds ($10 billion) to buy out its rival Worldpay. The deal came to a conclusion after massive pressure from investors and rival interest from the likes of US bank JPMorgan.
The duo’s agreement comes at a time when the world is putting a keen eye on technology and innovation. According to Philip Jansen, the Worldpay’s Chief Executive Officer the need for better payment solutions if growing by the day.
He says, “The growth of e-commerce and the way consumers expect to transact is increasing complexity for businesses around the world.”
Vantiv will be riding on a greater exposure
The U.S. credit card processing company started its operations in the 70’s and it has been growing from strength to strength. Within five years, Vantiv has managed to beat JPMorgan for UK rival Worldpay in the IPO. The company‘s intention is to transform the e-commerce sector, which has been on a slippery ground into an exciting source of growth. The implementation of the intention will give Vantiv an incredible exposure to Internet retailers and small businesses.
This comes at a time when there is a steady shift from the use of cheques and cash to cards and digital payments. Vantiv’s president and CEO Charles Drucker further emphasizes that the combined company will be providing the world and the payments industry with a comprehensive suite of solutions
What is in the future of such deals?
Records have it that Worldpay processes more than 31 million mobile, online and in-store transactions on a daily basis. The new combination is now expected to process more than $1.5 trillion in payments and 40 billion transactions.
In terms of leadership, Vantiv’s boss Drucker and Worldpay’s Jansen will take up the roles of executive chairman and co-CEO respectively.
Meanwhile, such deals seem to be gaining momentum by the day and with a clear indication that they will bring benefits to the payment industry.