Vantiv Expands Its Footprint Globally
Vantiv Grows with WorldPay Merger
U.S. credit card processing company Vantiv secured a deal to buy British-based rival Worldpay for $10.4 billion this week in a bid to create a global payments powerhouse.
Vantiv’s purchase is part of a wave of payments company mergers as consumers move away from cash transactions to digital payments. Companies such as Vantiv with a strong presence in the United States are trying to establish a global footprint in the fast-evolving payments industry.
The combined Worldpay and Vantiv, which were both spun out of banks and have thrived in their home markets, will be called “Worldpay” and headquartered in Cincinnati, with a primary listing in New York and a secondary one in London.
A New Global Payments Giant
According to Fortune, the combined company will process approximately $1.5 trillion in payments and 40 billion transactions through more than 300 payment methods in 146 countries and 126 currencies, with a combined net revenue of over $3.2 billion.
“We’re creating a truly global platform for expansion,” said Worldpay CEO Philip Jansen, adding the business will rank as the top payment firm in the U.S. and in Europe and sees scope for additional growth in Latin America and the Asia Pacific region.
Merger Means More Options for Merchants
“Our combined company will have unparalleled scale, a comprehensive suite of solutions, and the worldwide reach to make us the payments industry global partner of choice,” Vantiv’s president and CEO Charles Drucker said, adding that the deal will bring benefits in terms of size and technology.
For Vantiv, the merger brings diversification from a geography and merchant-concentration perspective,” Jared Drieling, director of business intelligence at The Strawhecker Group, told Digital Transactions News. “Clearly, the deal provides Vantiv with international capabilities, and the top acquiring position in the United Kingdom. The merger also provides Vantiv some diversification within its existing merchant portfolio.”
Drieling also cites “e-commerce assets and technology synergies among both platforms” as key benefits of the deal. “Worldpay is a heavyweight in international e-commerce, and Vantiv is a leader in U.S. e-commerce,” he says. “This will be a powerful combination.”
Find Out More How this Merger May Affect Your Business:
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