September 21, 2015
Worldpay Limited is all set to go for the biggest IPO this year. The payment processing company that provides payment services for mail order and Internet retailers, as well as point-of-sale transactions, will be raising around £890 million ($1.4 billion) with this initial public offering. However, the company had other major options also:
1.The company's rival Ingenico wanted to acquire the company at a whooping amount of £6.6 bn.
2. It's German Rival, Wirecard AG was planning to bid for the payment company at $9.4 billion.
3. The payment processing company wanted to go public on the London Stock Exchange.
The company offers a range of services, including acquiring, gateway services, alternative payments, risk management and mobile payments. The company serves airline, digital content, gambling, retail, travel and video game clients. In addition, the company operates across 40 countries and processes over 75 payment types in more than 120 transaction currencies.
Worldpay will be going public on the London Stock Exchange this year in October. The majority of the stake in Worldpay is currently owned by Bain Capital and Advent. Back in 2013, Royal Bank of Scotland (RBS) had sold its remaining 20% stake in Worldpay for $248 million. RBS had first bought the company back in 2002 and has made it one of the leading payment processing businesses in the industry. Worldpay had spun off from RBS in 2010 in a $3-billion deal with Bain Capital and Advent International.
The payment processing company has rejected the buying out options from its rival companies like Ingenico which offered a whopping amount of £6.6 billion including debt. The company’s publicly traded shares are expected to be at least 25% of outstanding stock. Prominent investment banks, Goldman Sachs, Morgan Stanley and Bank of America are currently making preparations for the upcoming listing of Worldpay on the London Stock Exchange. The top management of the company is also expected to get more than £100 million after the initial IPO of the company. According to Worldpay, around 200 managers will receive significant amounts from the IPO and all 4,500 employees will be getting a share in the windfall shares given for free to the employees of a company or a firm.
Last year in December, Worldpay officially closed its acquisition of SecureNet Payment Systems from private equity firm Sterling Partners. SecureNet provides cloud-based solutions to seamlessly integrate point-of-sale, mobile and e-commerce payments processing, inventory management and data analytics for merchants. The company also owns a valuable stake of 6% in Visa Europe, which is in talks about a takeover by its US cousin, Visa Inc.
Worldpay has been a pioneer in card payments, multicurrency processing, online payments and contactless, and is aiming to lead the way in expanding global reach, data analytics and optimization, and the emerging field of integrated payments. The company processes 31 million mobile, online and in-store transactions. In 2014, Worldpay handled c.11.5bn transactions, with a total value of £370 bn and an average transaction value of £32.24 and are the leader in payments in the UK, where it processes approximately 42% of all transactions. The company's solutions are delivered by 4,500 colleagues from its corporate headquarters in London and 25 offices in 11 countries around the world. The Group has three operating divisions: Global eCom, Worldpay US and Worldpay UK.