Vantiv Inc (NYSE:VNTV) has signed a $10 billion merger deal with Worldpay.
The deal will have Vantiv Inc using both cash and shares to purchase WorldPay. Worldpay shareholders will get roughly 71 cents and 0.0672 of a new VNTV share per share. This represents a premium of 34% over Worldpay’s six-month volume weighted average price.
Vantiv Inc’s offer to merger with Worldpay will have the company’s shareholders owning 57% of VNTV shares. The remaining 43% of shares will belong to new VNTV shareholders. The offer also includes an interim dividend of 10 cents per share and a special dividend of $5.45 per share for Worldpay shareholders if the deal is completed.
If the merger of the two companies reaches completion, the new company will go by the name Worldpay. Its headquarters will be located in Cincinnati, Ohio, but it will also maintain an international headquarters in London.
Charles Drucker, the current head of Vantiv Inc, will lead the new company and Executive Chairman and co-CEO. Worldpay CEO Philip Jansen will report to Drucker as the co-CEO of the new company. The new Board of Directors will be made up of five Worldpay directors and eight from VNTV.
Vantiv Inc says that it expects the merger with Worldpay to close in early 2018. However, it will first have to get approval from shareholders, regulators, and complete customary closing conditions. Both companies Board of Directors have given their approval to the merger.
VNTV stock was up 1% as of Wednesday morning and is up 9% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.