May 26, 2015
Worldpay Limited is a payment processing company that provides payment services for mail order and Internet retailers as well as point-of-sale transactions. 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. 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 later this year, probably in September. 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.
Prominent investment banks, Goldman Sachs and Lazard are currently making preparations for the upcoming listing of Worldpay on the London Stock Exchange. At the upcoming IPO, the company is estimated to reach an enterprise value of around $9 billion according to The Sunday Times.
There are numerous developments that clearly attribute to Worldpay reaching this massive valuation. Some key highlights:
Earlier this year, Worldpay and CAN Capital—a leading player in alternative small business finance—formed a partnership to offer merchants fast, efficient access to working capital allowing them to grow and manage their businesses while preserving cash flow.
In December last year, 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.
In the same month, Worldpay and Avalara formed a strategic partnership to provide payment and tax compliance services to online customers looking to trade globally. Avalara is a leading provider of cloud-based software that delivers compliance solutions related to sales tax, VAT and other transactional taxes. This partnership helps online businesses ensure that they are compliant with complex international sales regulations and are able to offer local payment methods to customers overseas.