Report: Wirecard Bids $9.4B for Worldpay (Aug. 27, 2015)
Paybefore Award-winning Wirecard, an independent global provider of outsourcing and white-label solutions for electronic payments, reportedly has thrown its hat into the ring to acquire Worldpay Ltd. for £6 billion (US$9.4 billion).
Munich-based Wirecard, which didn’t comment on the possible acquisition, isn’t the only possible suitor. Several other bidders are in the running to buy Worldpay, including a joint proposal by Blackstone Group and Hellman & Friedman, according to a Bloomberg report. The U.K.-based payment processor’s owners, Advent International Corp. and Bain Capital, could decide to sell Worldpay or proceed with its planned IPO.
“[Wirecard] is turning itself into a major global payments group covering issuing and acquiring, along with processing,” says David Parker, founder and CEO of U.K.-based Polymath Consulting. “The Worldpay acquisition would add further strength to these global ambitions and scale to their already fast-growing business. It would certainly be an aggressive move for Wirecard, but one that would align with its previous actions and public strategy,” he suggests.
Wirecard last week announced a successful first half of 2015, with revenues of €340.1 million (US$386.4 million), a 26.5 percent increase compared with revenues of €268.8 million (US$305.5 million) during the same period a year ago.
The company said it will continue its organic growth strategy in combination with international acquisitions. “We achieved very strong growth in our core e-commerce business and are convinced that this trend will continue,” Wirecard CEO Markus Braun said in a press release. “Alongside the sustainable expansion of our existing customer business in Europe and Asia, Wirecard will thus push forward with its global expansion.”
Should a deal be consummated between Wirecard and Worldpay, it would be another example of two powerhouse processors coming together. Optimal Payments closed earlier this month on its acquisition of Skrill Group for €1.1 billion (US$1.2 billion).