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VNTV Stock Investors Like Vantiv Plan to Buy Mercury Payment

The deal is expected to close during second quarter


On Tuesday, Vantiv (VNTV) announced that it will acquire Mercury Payment Systems. Investors liked the news sending VNTV shares up almost 5% in morning trading.

mergers and acquisitionMercury Payment Systems is majority-owned by private equity firm Silver Lake Group. VNTV will pay about $1.65 billion to acquire Mercury. The acquisition will provide a modest boost to VNTV’s 2014 earnings and is forecast to raise revenue growth by between 1% and 2% per year, Reuters notes.

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In 2o13, Mercury generated $237 million in annual revenue, up 17% from the prior year. Mercury had planned to hold an IPO this year, but those plans have now been suspended.

VNTV anticipates the deal to be finalized during the second calendar quarter of this year.

Last year, VNTV bought Element Payment Systems. The addition of Mercury Payment Systems is expected to bolster VNTV’s presence in the payment system business.

VNTV stock closed at $29.82 per share on Monday.

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