PetersonBrown Group - Worldpay shares rocket on takeover news

Worldpay shares rocket on takeover news

Kane Davis Cooper –  The share price of payment processing company Worldpay (formerly RBS WorldPay) surged upwards by nearly 30% after they announced renewed takeover attention.

UK based Worldpay, whose revenue last year exceeded 4.5 billion pounds, said it had received introductory advances from US payments colossuses JPMorgan and Vantiv.

Worldpay did offer somewhat of a disclaimer by saying that “there can be no certainty either that an offer will be made nor as to the terms of any offer, if made”.

Worldpay is responsible for the processing of a huge number of mobile, online and store trades every day.

The company modestly calls itself a leading innovator in payment processing, especially in the areas of card payments, inter-currency processing and the quickly rising area of online and contactless transactions.

Worldpay also describes itself as the UK’s leading payment processor and currently accounts for just under half of all daily transactions and has a workforce of thousands at its London HQ.

Its use is especially prevalent in small and medium-sized enterprises such as barbershops, cafes and corner shops.

Worldpay was accepted into the big players league in the FTSE 100 a couple of years back and is the second time in as many days that payment processor companies have come under the spotlight of takeover talk. Nets A/S, the payment company from Denmark announced that it had been contacted by potential new owners and word on the street has it that it could be industry big boys Visa or Mastercard.

The payments processing sector is one of the most fascinating areas in the financial markets at present according to leading financial investors in the City. Expectations are that the smaller players in the market will be swallowed up by a small number of established companies as firms look to create a more global market presence.