Stocks of Worldpay, the largest payment processing company in Britain, are moving up, after it received bids for a buyout from Vantiv, Inc., a credit card processing company from USA and JP Morgan Chase, which caused an increase in share prices by 25%.
The bid indicates how credit card companies are attracting specialists in automated payments. There are also technology companies who want to leverage this opportunity by integrating technology in the form of smartphones or other handheld devices with the payment processing system.
Another development is from Nets A/S, a payment services company from Denmark, who has been approached by potential buyers as well.
Worldpay has not confirmed the materialization of this deal and sources close to the organization have said this information is unsolicited. Worldpay pushes technology to businesses so that they can accept payments either through credit cards or online or through handheld devices.
As a result of this potential acquisition news, the stocks of the company hit an all-time record high, which went up by 25.4%. To date, the company has a market capitalization of about 6.43 billion pounds ($8.3 billion).
Analysts are speculating there might be other potential players who might be interested in the bid and we can expect some more names to jump into the ring. Vantiv and JP Morgan are expected to confirm the news by August 1. Vantiv was not available for comment and JP Morgan has refused to share any insight into this development.
Anirudh M. for TechFunnel.com