Payment processing company, Vantiv, recently secured $10 billion to acquire Worldpay.
The two global payment processing companies arrived at a mutual agreement to undergo a merger, which was announced in July, but formalized earlier this month. Once the merger is complete, the office of the new entity will be located in Cincinnati. Combined revenue from both organizations in 2016 was $9.5 billion which is equivalent to that of eBay.
According to Charles Drucker, CEO of Vantiv, the collaboration will bring a major shift in the world of payment processing. He said this will open new avenues of growth for the organization and the volume of transactions will increase to $1.5 trillion annually with more than 300 payment methods in 146 countries.
The collaboration will bring a competitive edge to the e-commerce industry and empower the new entity to innovate globally and reach out to newer markets.
There will also be tremendous savings financially, particularly for Worldpay. As indicated by CEO Philip Eric Rene Jansen, the savings will be about $200 million and over 63% of the savings will come from overlapping of the two business entities.
Both companies have similar lines of business and hence it is imperative to ensure there are no duplicate activities, as indicated by Jansen.
Vantiv has a total of 3300 employees while Worldpay has around 5000 employees, which includes 1500 in Great Britain. No one from either company has commented on the impact the merger will have on employees’ jobs.