Payment processing services provider Vantiv has entered into an agreement to merge Britain's Worldpay for £7.7bn ($10bn).
The potential merger is expected to create a scale world class payments group in a dynamic market, with deep payments capabilities.
It will also have strong distribution channels to serve merchants around the world in the global ecommerce market.
Vantiv said: “The Combined Group is expected to benefit from its strong presence and substantial opportunities in integrated payments and global ecommerce.”
The combined entity is expected to have a strong position in the four core regions of the US, Europe, Asia-Pacific and South America.
After the completion of the merger, Worldpay Shares will be delisted from the London Stock Exchange. The board of the combined group will consist of 4 Worldpay Directors and 7 Vantiv Directors.
With hubs in the UK, Europe and US, the merged entity is expected to benefit from substantial engineering capability and talent.
Vantiv added: “The Boards of Worldpay and Vantiv have identified substantial opportunities for cost synergies, which support significant potential shareholder value creation.
“In addition, the Boards of Worldpay and Vantiv believe that there would be additional revenue growth opportunities that may be realised as a result of the Potential Merger.”
The transaction is subject to regulatory and merger control approvals.
In December 2010, Royal Bank of Scotland (RBS) sold 80% stake of its stake in Worldpay to Bain Capital and Advent International, for an enterprise value of up to £2.025bn including a £200m contingent consideration. The remaining stake in WorldPay was sold to the acquirers in November 2013.
Image: Worldpay Shares will be delisted from the London Stock Exchange after the merger. Photo courtesy of mapichai/FreeDigitalPhotos.net.