Worldline, a French-based payment solution provider has announced to acquire Ingenico, another French-based electronic transaction security provider which will provide Ingenico a valuation of around $8.6 billion consisting of 81% stock and 19% cash. Ingenico is currently serving 37% of the global market with its point-of-sale terminal services.
Worldline has decided to pay 11 Worldline shares and around 160.5 Euros in cash for every 7 Ingenico shares to Ingenico shareholders along with 56 Worldline shares for every 29 Ingenico shares to the investors of Ingenico.
Worldline noted that, with this deal, the combined organization will be the fourth biggest payments firm, globally, with net revenue of worth 5.3 billion Euros along with the operating margins of worth 1.2 billion Euros that has been showcased in 2019. The company expects that the deal will generate cost savings of worth 250 million Euros in coming four years.
According to various reports, in this agreement, it has also been decided that Gilles Grapine, the present CEO of Worldline, will lead the combined company as the new CEO, and Bernard Bourigeaud, the Chairman of Ingenico, is expected to be signed as non-executive chairman of the combined firm.
Gilles has mentioned the deal as a “landmark transaction for the industrial consolidation of European payments” that will boom the firm as a world-class leader in the electronic payment category of Europe. While, for Bernard this deal “offers a unique opportunity to create the undisputed European champion in payments on par with the largest international players.”
The deal is expected to be closed in third quarter of this year with the approval of shareholders and regulatory which is pending till now. After the closer, the new platform will have 1,200 financial institution customers with 1 million merchants and 20,000 employees across 50 countries.