Worldpay, Vantiv merger progressing

Recent developments in the agreed upon merger of Vantiv Inc. and Worldpay Group plc, expected to close on Jan. 16, 2018, include confirmation of key executive roles and designation of Cincinnati as the new company's global and corporate headquarters. London, where Worldpay is based, will become the international headquarters for the new company, which will use the name Worldpay Inc. Upon closing, shares of common A stock will trade on the NYSE under the symbol "WP" and London Stock Exchange as "WPY".

Charles Drucker, President and Chief Executive Officer of Vantiv, will assume the role of Chairman and co-CEO of the new company. Worldpay CEO Philip Jansen will also serve as co-CEO of the newly formed company. In their new roles, Drucker will lead the company's strategic initiatives, including the integration of combined businesses, while Jansen will guide go-to-market and sales efforts, including cross-selling across the combined entities' client base.

Leadership team forms

"Our new executive team leverages the strong talent of the two companies," Drucker said about the merger. Jansen added, "The executive talent we've brought together will provide great continuity for the business and will help us have a fast-start in the market as the transaction closes."

Other key appointments that will be effective upon closing of the transaction include Stephanie Ferris as global Chief Financial Officer, Mark Heimbouch as Chief Operating Officer, Mark Kimber as Chief Product Officer, Kevin McCarten as Global Chief Strategy Officer and Matt Taylor as Executive Vice President of Global Integrated Payments and SMB eCommerce.

On Dec. 4, 2017, Vantiv launched an offering for the $1.13 billion equivalent of senior unsecured Notes due in 2025. Vantiv said it plans to use net proceeds from the offering of the Notes to refinance existing debt of Worldpay in connection with the acquisition and to pay fees and expenses connected with the financing. The Notes will be offered in the United States to qualified institutional buyers.

Worldpay teams with Klarna

In a separate development, Worldpay entered a partnership agreement with European payment provider Klarna Inc. in early December. The integrated offerings will allow ecommerce businesses across much of Europe to accept invoice and installment payments from online customers.

Merchants who offer these expanded payment options could see conversion rates improve by up to 20 percent, according to the partners. And for consumers, the ability to manage terms of payment offers more flexibility than with traditional credit or debit card payments.

"Klarna assumes responsibility for managing credit and fraud risks, allowing companies to quickly receive payment for orders and allowing consumers to pay only if they're happy with their purchase," said Michael Rouse, Chief Commercial Officer at Klarna. "We offer more flexibility in how to manage payments for products and services."

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