Vantiv Acquires Mercury Payment Systems for $1.65 Billion

May 15, 2014

Vantiv Acquires Mercury Payment Systems for $1.65 Billion Cincinnati-based payments processor Vantiv said it has agreed to purchase Durango, Colo. ISO Mercury Payment Systems for $1.65 billion. Since the acquirer spun off from financial institution parent Fifth Third Bank in 2009, the acquisition is the largest by a factor of five, according to FT Partners, which advised Mercury on the sale.

Mercury had been preparing for an IPO—it had filed papers with the SEC in March—but has suspended those plans, reports said. Vantiv executives point to Mercury’s strength in the integrated payment space—providing tools businesses can use to integrate accounts payable, CRM and other business applications with payment processing.

“It’s predicted that by 2017, 30 percent of the payment volume will be through integrated payments and that’s been growing rapidly over the last several years,” Charles Drucker, CEO of Vantiv, said.

According to Vantiv, the deal is expected to add one to two percentage points annually to the company’s net revenue growth. Mercury performed nearly 1.2 billion transactions in 2013 worth $34 billion for 88,000 merchant clients. The companies expect the acquisition to close before the end of June.