Global payments giant Worldpay Group, which processes approximately 11.5 billion transactions annually, has announced it intends to float on the London Stock Exchange.
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Chief executive Philip Jansen said: “Worldpay has been transformed into a global leader in payments since it became an independent company in 2010”.
But the private equity firms will have weighed up whether to take their money up front for an immediate exit or risk a stock market swoon in the weeks to come that could leave them locked into holdings valued below Ingenico’s offer.
“It will enable us to access new capital for growth, augment our global proposition and further enhance our ability to serve customers across the world”, he declared.
Ingenico’s interest in Worldpay was its potential to help elevate the French firm’s position and expand its business beyond payments hardware that offers similar processing capabilities to Worldpay’s.
It supports about 400,000 merchants, including large firms and domestic corporates and approximately 377,000 small and medium sized businesses.
“We are extremely proud of what has been achieved through the dedication and talent of Worldpay’s approximately 4,500 colleagues and are optimistic for the future of the company”.
The IPO plan went back on track on Wednesday as its owners grew more concerned about the risks attached to Ingenico’s bid, which would have doubled the French company’s market capitalisation and needed shareholder approval.
Today’s decision to press on with an October IPO will propel WorldPay straight into the FTSE, and raise about £890m to pay off debt and re-invest the business. But Worldpay chairman, Sir Mike Rake who is former head of the CBI, ended that speculation by opting for the floatation.
In the first six months of 2015, Worldpay’s net revenue was £465.7 million and Underlying EBITDA was £182.6 million, up 13.4% and 13.1% respectively compared to the equivalent period a year earlier.
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The group expects to declare dividends of 20-30% of post-tax profit a year, starting with an interim dividend for the financial year ending December 31, 2016.
