Worldline’s $8.6 Billion Acquisition of Ingenico

By Christopher Shim, Robert Szongoth, Karthik Neelamegam, Adit Rajeev, Rohan Shah (University of Cambridge) Mariona Planella Boix (ESADE)

 

Overview of the deal


Acquirer: Worldline

Target: Ingenico

Implied EV: $11 Billion

Total Transaction Size: $8.6 Billion

Announced Date: February 3, 2020


Worldline has announced its move to acquire Ingenico in a cash-and-share deal that gives Ingenico a valuation of €7.8 billion. Both companies are based in France, and were established during the 1970s and 1980s when these electronic financial services companies first emerged. Worldline emerged from Atos, while Ingenico until this acquisition has been independent. Addressing shareholder concerns, Worldline announced that all Ingenico shareholders would receive 11 Worldline shares along with €160.5 for every 7 Ingenico shares. Pending shareholder and regulatory approval, this merger is expected to close in Q3 of 2020. The current arrangement stands that Worldline’s CEO and Chairman, Gilles Grapinet, will lead the combined company.


The merger of both companies will produce an impressive outcome indeed. Worldline and Ingenico together will have 1200 financial institution customers and 20,000 employees across 50 countries. Furthermore, this merger is a part of a broader trend of mergers in the wider fintech and payments space in Europe, which have totalled up to around €83 billion since 2013. This deal makes the figure now over €90 billion. The acquisition of Ingenico by Worldline is an outsized deal among these recent mergers.


Company Details: Worldline


Worldline is a financial payments company which provides a range of services such as online payments through in-store point-of-sale terminals, fraud and banking protection, and data analytics. Currently ranked as the no.1 company focusing on payment and transactional services in the European market and with a significant global presence, Worldline’s activities are centered around three main business lines: merchant services (aiding commerce with advanced payment services), financial services (consolidating payment processing, incl. digital banking) and mobility & e-transactional services (bringing payment and regulation expertise to new markets). Worldline considers sustainability to be a central pillar of their business model and is as such the first company in the payments industry to have become carbon-neutral, in 2019. Worldline considers M&A and the integration of recent acquisitions as the keys to future growth, with an operational emphasis on online commerce and digital banking.


Founded in 06/14/2010, Headquartered in Bezons, France

CEO: Gilles Grapinet

Market Cap: $13.362 Billion

LTM Revenue: $2.32 Billion

LTM EV/Revenue: 5.99

Number of employees: 11877

EV: $13.90 Billion

LTM EBITDA: $435 Million

LTM EV/EBITDA: 26.04


Company Details: Ingenico