Wirecard interested in Worldpay?

According to an article by Bloomberg, German payments processor Wirecard has joined the bidding for U.K. rival Worldpay, according to people with knowledge of the matter.

Bidding Competition

Wirecard is competing against private-equity bidders, including a joint proposal from Blackstone Group and Hellman & Friedman, as Worldpay also prepares for a possible initial public offering (IPO) according to the undisclosed source. The offer would value Worldpay, - owned by Advent International Corp. and Bain Capital - at about 6 billion pounds ($9.4 billion) or 17 times its projected earnings before interest and taxes next year.

Initial Public Offering

Advent and Bain may also choose to proceed with IPO plans and not sell the company. A decision may be announced as early as next month. London-based Worldpay, which last month named Barclays Plc Deputy Chairman Michael Rake as its next chairman, has approached banks about refinancing its debt before the potential IPO.

No final decision has been made and several potential buyers are still in the running, the people said. Representatives for Wirecard, Worldpay, Bain, Blackstone and Hellman & Friedman and Advent declined to comment.

About Wirecard and Worldpay

Based in Aschheim near Munich, Wirecard specializes in online and mobile payments. It has worked with customers including ProSiebenSat.1 Media SE, Orange SA and Daimler AG’s mytaxi. Founded in 1999, Wirecard has increased its profit more than tenfold in the past decade and reported net income of 108 million euros last year.

Advent and Bain Capital bought Worldpay from Royal Bank of Scotland Plc in 2010 for 1.7 billion pounds. The company, which processes in-store, mobile and online payment transactions, reported earnings (before interest, taxes) of 375 million pounds (~516 million euro) last year, on revenue of 3.6 billion pounds (~4.96 billion euro), according to the Worldpay website.


Sourced from Article on Bloomberg, August 25th, 2015

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