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Worldline to acquire Ingenico for $8.6bn

Worldline will acquire Ingenico for $8.6 billion in a deal that creates the world’s fourth largest payments firm.

The firms’ Boards of Directors have “unanimously approved” the acquisition, consisting of an 81% share and 19% cash transaction, as of last closing prices.

Both companies are based in France, and with their combined powers the new entity will have 20,000 employees in approximately 50 countries – and have access to nearly one million merchants and 1,200 financial institutions.

Gilles Grapinet, Worldline’s Chairman and CEO, calls it a “landmark transaction for the industrial consolidation of European payments”.

Grapinet will become CEO of the combined company and Ingenico Chairman Bernard Bourigeaud is “expected” to become non-executive Chairman of the Board of Directors upon closing.

The firms dish up plenty of stats in support of this massive acquisition. For instance, they cite proforma 2019E net revenues of €5.3 billion and a €1.2 billion operating margin before depreciation and amortisation (OMDA). The combined revenue is pitched at €2.5 billion in merchant services.

There is no word on any job cuts yet, but the duo expects to make €250 million in savings in 2024.

Upon closing of the deal, former Worldline shareholders will own c.65% of the combined entity and former Ingenico shareholders will own c.35%. Ingenico shareholders can expect to receive €123.10 per share, a 17% premium on Friday’s (31 January) closing price, or a mix of cash and shares.

While the Worldline-Ingenico deal is nothing to be sniffed at, last year saw some mightier deals as firms consolidated to deal with new challenges and cut costs.

Global Payments merged with Total Systems Services to form a $40 billion beast; US-based FIS bought payment processor Worldpay for $35 billion; and Fiserv acquired First Data in a $22 billion deal.

Antony Peyton
Antony Peyton
Founder and Editor of Fintech Direct. Follow on Twitter @TonyFintech.

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