Worldline to Acquire Ingenico, Creating New Payments Giant

Competition in the payments 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 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 have approved a merger agreement, in which Worldline would launch a tender offer for all of Ingenico shares, consisting of 81 per cent stock and 19 per cent 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 7 shares tendered. A secondary exchange 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 non-executive chairman.
A “great day for Worldline and for Ingenico”