Worldpay Inc (LON:WPY) is to merge with US payments peer FIS just a year after completing a merger with Vantiv, another US-based payment group.
The Worldpay name will disappear through this latest deal, which will result in a company with sales of about US$12.3bn.
FIS expects to save US$400mln in lower costs through the merger, while organic revenue at the enlarged group will rise to 9% from 6%.
Gary Norcross, FIS boss, will remain as chairman, president and CEO while Worldpay’s Charles Drucker will be executive vice chairman.
Cash and share deal
Terms of the deal are 0.9287 FIS shares and $11.00 in cash for each Worldpay share.
FIS shareholders will own 53% of the enlarged group and Worldpay shareholders 47%.
The deal puts an enterprise value of approximately US $43bn on Worldpay including debt, which FIS expects to refinance.
“Scale matters in our rapidly changing industry," said Norcross.
Worldpay has a secondary listing in the UK and shares rose 11% to £8,250.