Bain Capital and Advent International have signed an agreement with Royal Bank of Scotland Group (RBSG) to acquire its subsidiary business RBS WorldPay, for an enterprise value of up to GBP2.025bn including a GBP200m contingent consideration. However, RBS will hold a minority stake of 19.9% in the new WorldPay business.
RBS WorldPay, also known as RBS Global Merchant Services, is a provider of card payment services. It offers services across the entire payment value chain, including transaction capturing, merchant acquiring and transaction processing.
The business of RBS WorldPay operates in over 30 countries and has the ability to process up to 680 transactions per second in 113 currencies across 72 payment methods. It enables clients to accept card payments either at point-of-sale, mail order or over the internet on a global, efficient and secure basis.
Ron Kalifa, who will be leading the business as CEO, said: “RBS WorldPay is a strong business with a leading position in its markets and I am confident that it will continue to grow and prosper under the joint ownership of Advent International and Bain Capital.
“I am also delighted that RBS Group will hold a minority stake in the business, providing ongoing support and helping to maintain existing relationships with our customer and supplier bases.”
James Brocklebank, managing director and head of financial services sector team in Europe at Advent, said: “WorldPay is a unique business and we are delighted to be supporting Ron Kalifa and his team in the next phase of its growth. Advent and Bain will be making a very significant investment in the company to enhance its technology and expand the range of products and services offered to merchants.
“Our long-standing specialisation in financial services and payment processing will also benefit the business as it moves forward as an independent entity.”
Robin Marshall, managing director of Bain Capital, said : “We are excited to work together with Advent, WorldPay management and RBS Group in further strengthening WorldPay’s position as one of the world’s leading global acquirers.”
The transaction is subject to regulatory approval and is expected to close before the end of 2010.