An official bid in the massive acquisition by Vantiv of Worldpay announced a month ago was tendered yesterday. After the deadline for a formal offer was extended twice, the Cincinnati-based payment processor said it will acquire the London-based acquirer with an enormous e-commerce portfolio for the previously reported $10 billion (£7.7 billion). One detail that emerged yesterday during the media call to announce the deal is the intention for Vantiv to shed its branding in favor of the Worldpay name. After spinning off from Fifth Third Bancorp, Fifth Third Processing Solutions became Vantiv in 2012.
After Vantiv CEO Charles Drucker—who will co-lead the organization with current Worldpay CEO Philip Jansen—detailed his vision of where its best opportunities exist, the decision to choose Worldpay as the name of the combined company makes sense.
“[The acquisition] creates an unmatched global e-commerce leader with a number one share in the world’s two largest and most developed payment markets and with a number one share worldwide,” Drucker said. “This combination will enable us to leapfrog our competition and create the future of payments.
“What excites us even more are the opportunities to expand into other geographies that Worldpay is just beginning to tap,” he continued. “Latin America and Asia Pacific offer outstanding growth potential. We’re already active in these markets offering e-commerce solutions to global merchants. We plan to build up on our presence and go domestic over time in many of these markets, expanding our global revenue base.”
Drucker noted that emerging markets are expected to drive 75 percent of all global card volume growth over the next 10 years and said Worldpay and Vantiv will leverage their positions in the U.S. and U.K. to expand into those high-growth areas.
The companies expect the deal to close in the first quarter of 2018.