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Worldline buys rival Ingenico in €7.8 billion deal creating a new European payments leader

The takeover of Ingenico gives the firm an implied equity value of €7.8 billion and would immediately increase Worldline’s earnings per share

European payment and transactional services provider Worldline has agreed to buy French rival Ingenico in a €7.8 billion (£6.64 bn, $8.64 billion) deal to create a new European leader in the sector.

The purchase by Worldline is the latest deal in the payments sector, where the firms cater to everything from small shops needing card terminals to large online businesses.

The transaction, which is subject to regulatory approval, is expected to close in the third quarter of 2020.

The global payments industry is set to reach $3 trillion a year in revenue by 2023 as more people switch from cash to digital payments for online and store purchases.

In 2019, Fiserv Inc bought First Data Corp for $22 billion, and Fidelity National Information Services (FIS) bought Worldpay for about $35 billion, marking their positions as the top two players globally.

The takeover of Ingenico gives the firm an implied equity value of €7.8 billion and would immediately increase Worldline’s earnings per share, with around €250 million expected in savings by 2024.

The price tag implies a premium of about 16 per cent to Ingenico’s closing market value on Friday of around €6.7 billion.

Ingenico shareholders would receive 11 Worldline shares and €160.5 in cash for seven Ingenico shares, in a primary tender offer.

There would also be a secondary offer, with 56 Worldline shares exchanged for 29 Ingenico shares, turning into an offer price of €123.10 per Ingenico share.

Ingenico shares jumped 11.2 per cent to €117 in early trading, while Worldline shares fell 4.2 per cent.

FURTHER READING: Bitcoin Suisse forms new partnership to offer crypto payment services to Swiss retailers

FURTHER READING: Indian payments processing firm launches new range of services including corporate credit cards

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