Worldline announces blockbuster deal to acquire Ingenico

Worldline is to acquire Ingenico, in a cash and share deal that gives the latter a valuation of €7.8 billion ($8.6 billion) and creates the fourth largest payment services player worldwide.

The combined group will offer payment services to nearly one million merchants and 1,200 financial institutions. The tie up merges Worldline's digital experience with Ingenico's strengths in merchant terminal and acquiring services.

“The combination offers a unique opportunity to create the undisputed European champion in payments on par with the largest international players. This transaction comes at the time of accelerating consolidation of the industry and I am convinced that the joined forces of both leaders will deeply transform the industry,” says Bernard Bourigeaud, Ingenico’s Chairman of the Board of Directors.

Ingenico was previously in talks with Natixis, Edenred and WorldPay. The Worldline bid has not gone down well with analysts at Quest who are recommending that “investors should, if they can, either opt for cash, sell their shares, push for a higher price or seek another suitor. It seems that this French solution is a poor deal for equity shareholders of both Ingenico and Worldline.”