Online-payments group Worldpay has agreed the final terms to a merger with US rival Vantiv, creating a combined entity worth around £22bn.
The merger was finally sealed after talks on the terms of the deal were extended earlier this week.
The merger values London-listed Worldpay at £9.3bn, with its shareholders to receive 55 pence in cash per ordinary Worldpay share along with 0.0672 of each share in the enlarged entity.
Newly created shares will be listed on both the New York and London stock exchanges.
At the same time, the enlarged group will retain the Worldpay brand, with headquarters in both London and Cincinnati.
The duo claimed the newly formed payments processing giant would be well placed to offer a broader range of solutions to customers across the world.
“This is a merger of two world-class payment companies, which will create a global omni-commerce leader, with substantial opportunities to capitalise on the rapid evolution of payments,” said Philip Jansen, chief executive of Worldpay.
Vantiv forecasts annual recurring pre-tax cost synergies of around $200m to result from the merger, to be realised by the end of the third year following the deal´s completion.
However, the combined group is also expected to incur one-off restructuring and integration costs of around $330m.
Rising M&A activity
Merger and acquisition (M&A) activity has picked up in the fast-growing online payments sector. Last week directors of UK-listed online payments company Paysafe recommended a £2.96bn offer from private-equity firms Blackstone and CV Partners.
France´s Ingenico also recently acquired Swedish payments firm Bambora in a €1.5bn deal.