Vantiv to buy payments processor Worldpay for around $10 billion

FTSE 100-listed Worldpay said earlier on Wednesday that it had reached an agreement in principle on the terms of a potential all-share merger with USA payment services provider Vantiv.

Worldpay shares, which soared on Tuesday on the news it was a takeover target, declined about 2 percent after the agreement was announced. Worldpay dropped 36 pence to £3.72, after news that it would sell for £3.85 per share, including stock, cash and a 5 pence dividend payment.

Worldpay shareholders would own around 41pc of the combined group under the deal with Vantiv.

Payment processing giant Vantiv has reached a deal to acquire London-based processing rival Worldpay for around $10 billion.

The company would be led by Vantiv's Charles Drucker as executive chairman - with Worldpay's Philip Jansen joining him as co-chief executive.

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The companies are now embarking on a due diligence process that will complete by August 1, per United Kingdom regulatory rules, and in the meantime they are outlining the rationale for the deal.

Worldpay is spurning overtures from JP Morgan to carve out a £9.1 billion deal with U.S. card technology group Vantiv.

The company later sealed the biggest floatation of 2015 when it listed on the London market with a valuation of £4.8bn.

Analysts suggested Worldpay could fetch up to 450p per share, nearly double the 2015 IPO price, valuing it at £9 billion.

"In response to an invitation from Worldpay, JPMorgan was at a very early stage in considering whether or not to make an offer or the terms of any offer for Worldpay", the statement reads. On Wednesday, it was worth 7.2 billion pounds.

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"JP Morgan continues to hold Worldpay in high regard", it added. "It will serve a wide range of customers, with a strong position in the four core regions of the US, Europe, Asia Pacific and South America".

- Worldpay is being advised on its deal with Vantiv by Goldman Sachs.

It provides payment services for point of sale transactions, and internet and mail order retailers.

Worldpay's announcement comes after European rival Nets A/S NETS, +1.88% said last week it's been approached by potential buyers.

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