Digital transaction processing firm Worldpay has confirmed to the London Stock Exchange that it has received acquisition bids from both Vantiv and JP Morgan Chase in the US, after reports started to circulate that the $10bn (£7.7bn) firm was open to a takeover.
Worldpay currently processes around 31m mobile, online and in-store transactions every day, and is a major competitor against the likes of Square, Stripe and PayPal. Following both the rumours and confirmation, the company’s shares have shot up almost 30 per cent to 410 pence per share, adding over $1bn to the market cap compared to opening price.
“The Board of Worldpay Group notes the recent press speculation concerning Worldpay and Worldpay share price movement and confirms that is has received preliminary approaches from Vantiv and JPMorgan Chase Bank in relation to the potential acquisition of the entire issue, and to be issued, share capital of Worldpay,” said the firm’s statement to the London Stock Exchange.
“There can be no certainty either than an offer will be made nor as to the terms of any offer, if made. A further announcement will be made if appropriate.”
Worldpay first developed as a subsidiary of NatWest Bank in 1989, before the initial dot-com boom, and became part of RBS when the two banks combined. In 2009, it span off into its own entity as part of a divestment agreement with the European Commission, made to provide RBS with a bail-out package following the financial crisis. The company became publicly listed in 2015.