Mergers & Acquisitions: How Worldpay Is Increasing its Payment Processing Bottom Line Through M&A

 

Last year, Worldpay, the worldwide payment processor was swallowed in one of the top billion-dollar transactions in the payments industry. Vantiv bought Worldpay Group, the UK-headquartered firm in a deal estimated at $10.4 billion.

This unification was one among the many takeovers in 2018 as a strategy by firms in space to grow and broaden their footprints in the market using Mergers & Acquisitions.

Only one year later, the new combined company under the name Worldpay became the talk of the town, on March 18, after Fidelity National Information Services (FIS) publicized it would buy the firm for a whopping  $35 billion.

In a press release by the acquiring company, the FIS announced that “this collaboration will greatly expand the company’s bottom line  by streamlining its acquiring and payment services while significantly boosting Worldpay’s distribution activities speeding up penetration into new markets.”

These prospects go in line with expectations highlighted by Worldpay Chief Operating Officer, Mark Heimbouch, in 2018’s Worldpay-Vantiv webinar. Commenting on the takeover, the COO acknowledged Vantiv’s journey and efforts mentioning it as one of the largest local payment processors.

Hasten to add, Worldpay’s extensive footprint in the international online retail makes it a good target for a merger. “The collaboration added to our range of offerings to the market and increased our availability, making us a worldwide service provider.”

The 2018 M&A deal also went down the right time placing the combined company in a position to tap into the United States’ legalized betting. Regulations for Sports betting were unclear until last year when the Supreme Court passed a law to allow sports betting, preparing the sector for rapid growth.

Vantiv was already supporting the legal gambling marketplace through lotteries and legitimate online gaming. Similarly, Worldpay was also offering payments to the legal betting market in the EU. However, according to Heimbouch, the combined entity only faced setbacks that rose from the cross-border characteristic of the agreement.

But the COO acknowledges that expecting any two firms to operate the same way—even if they’re located in the same nation—is impractical. So the consolidation of the deal’s integration, the two companies had to work out the differences in their business structures and decision-making procedures.

Wrapping Up

Vantiv and Worldpay entered the merger with a functional structure that set everything rolling as soon as the combined entity kicked off. And now, with the FIS deal set to go down, we expect to see more changes in the management process and order of operations.

Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding WorldPay reviews U.K of the industry has helped thousands of business owners save money and time.

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