Worldpay is spurning overtures from JP Morgan to carve out a £9.1 billion deal with US card technology group Vantiv.
Worldpay shares closed 28% up yesterday as the UK payment processor confirmed that it had received seperate preliminary approaches from JP Morgan Chase and Vantiv over a potential takeover.
Under the terms of the predominantly all-share deal, Vantiv values Worldpay shares at 385 pence a piece, and will pay a 5p dividend to shareholders. This values Worldpay at £7.7bn, plus £1.4bn to cover debts.
The merger would create a globe-straddling payments group providing a comprehensive range of merchant services across online and instore channels. The two companies say they see substantial cost synergies from a deal, and the potential for strong revenue growth by leveraging at-scale engineering and innovation at the company’s three hubs in the UK, Europe and US.
The newly-combined group would operate under the leadership of two chief executives, Vantiv’s Charles Drucker and Worldpay’s Philip Jansen, located at their respective bases in Cincinnati and London.
The deal is the latest in a string of acquisitions by Vantiv, following last year’s $406.8 million takeover of the American arm of Moneris Solutions Corporation, and an agreement struck in April to buy Paymetric for an undisclosed amount.
Upon completion Worldpay Shares will be delisted from the London Stock Exchange with common stock traded on the New York Stock Exchange.
Responding to the news, JPMorgan issued a statement saying that it was walking away from the talks.
“In response to an invitation from Worldpay, JPMorgan was at a very early stage in considering whether or not to make an offer or the terms of any offer for Worldpay,” the statement reads. “Following preliminary considerations, JPMorgan hereby announces that it does not intend to make an offer for Worldpay.”