Worldline to Acquire Ingenico, Creating New Payments Giant
- The combined entity would be the fourth-largest company in the payments sector.
Competition in the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term space is growing, with newer fintech companies coming into the industry that are more adaptable to changes in technology and consumer habits. Now, the sector is about to get a new big player, with Worldline set to acquire Ingenico, creating the fourth-largest company in the payments industry.
In a statement published this Monday, Worldline and Ingenico announced that their respective Boards of Directors had approved a merger agreement, in which Worldline would launch a tender offer for all of Ingenico shares, consisting of 81 percent stock and 19 percent cash.
Following the acquisition, the combined entity would offer its payment services to nearly 1 million merchants and 1,200 financial institutions. Furthermore, according to the statement, the transaction gives Ingenico an implied equity value of €7.8 billion ($8.6 billion).
Projected 2019 revenues for the combined entity is €5.3 billion, and operating margins of €1.2 billion. In addition, the French payments company expects the deal will create cost savings of €250 million over the next four years.
The transaction consists of a primary offer, in which, Ingenico shareholders will receive 11 Worldline shares and €160.5 in cash for seven shares tendered. A secondary Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term offer will see 56 Worldline shares traded in exchange for 29 Ingenico shares, and a secondary cash offer of €123.10 per Ingenico share.
The Chief Executive Officer (CEO) of Worldline, Gilles Grapinet, will lead the fourth-largest company in the payments space as the CEO. Ingenico Chairman Bernard Bourigeaud is expected to be appointed as a non-executive chairman.
A "great day for Worldline and for Ingenico"
Gilles Grapinet, CEO of Worldline
Source: Worldline
Commenting on the merger, Gilles Grapinet, Worldline's Chairman and CEO, said in the statement: "I am proud to announce that today is a great day for Worldline and for Ingenico, and more widely for our Payment industry: Together we create the European World-Class leader in digital payments..."
"I am convinced that the combination of our respective remarkable talents pools, joint capabilities and state-of-the art offers will procure our combined Company an outstanding value proposition to pursue an exceptional growth benefitting to all our clients, banks and merchants alike and to all our business partners."
"This is a landmark transaction for the industrial consolidation of European payments, highly value creative for all our stakeholders and for the shareholders of both companies, and which ambitions to reinforce the role of Europe within the global digital payment ecosystem."
Competition in the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term space is growing, with newer fintech companies coming into the industry that are more adaptable to changes in technology and consumer habits. Now, the sector is about to get a new big player, with Worldline set to acquire Ingenico, creating the fourth-largest company in the payments industry.
In a statement published this Monday, Worldline and Ingenico announced that their respective Boards of Directors had approved a merger agreement, in which Worldline would launch a tender offer for all of Ingenico shares, consisting of 81 percent stock and 19 percent cash.
Following the acquisition, the combined entity would offer its payment services to nearly 1 million merchants and 1,200 financial institutions. Furthermore, according to the statement, the transaction gives Ingenico an implied equity value of €7.8 billion ($8.6 billion).
Projected 2019 revenues for the combined entity is €5.3 billion, and operating margins of €1.2 billion. In addition, the French payments company expects the deal will create cost savings of €250 million over the next four years.
The transaction consists of a primary offer, in which, Ingenico shareholders will receive 11 Worldline shares and €160.5 in cash for seven shares tendered. A secondary Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term offer will see 56 Worldline shares traded in exchange for 29 Ingenico shares, and a secondary cash offer of €123.10 per Ingenico share.
The Chief Executive Officer (CEO) of Worldline, Gilles Grapinet, will lead the fourth-largest company in the payments space as the CEO. Ingenico Chairman Bernard Bourigeaud is expected to be appointed as a non-executive chairman.
A "great day for Worldline and for Ingenico"
Gilles Grapinet, CEO of Worldline
Source: Worldline
Commenting on the merger, Gilles Grapinet, Worldline's Chairman and CEO, said in the statement: "I am proud to announce that today is a great day for Worldline and for Ingenico, and more widely for our Payment industry: Together we create the European World-Class leader in digital payments..."
"I am convinced that the combination of our respective remarkable talents pools, joint capabilities and state-of-the art offers will procure our combined Company an outstanding value proposition to pursue an exceptional growth benefitting to all our clients, banks and merchants alike and to all our business partners."
"This is a landmark transaction for the industrial consolidation of European payments, highly value creative for all our stakeholders and for the shareholders of both companies, and which ambitions to reinforce the role of Europe within the global digital payment ecosystem."