Payment processing giants Worldpay and Vantiv made investment promises to both the UK and US governments as they sought to push through their £9.3bn merger, City A.M. has learned.
High-profile advisers from Goldman Sachs and Barclays worked on the Worldpay side of the deal, raking in an estimated $35m (£27m) of fees between them and guiding the FTSE 100 firm through what could have been a tricky merger.
Worldpay and US firm Vantiv, advised by Morgan Stanley and Credit Suisse, stopped short of making formal “post-offer undertakings”, as was the case when Japan’s SoftBank took over UK tech firm Arm last summer.
But sources close to the deal told City A.M. that both the UK and US governments were consulted throughout the merger process and that the firms made informal commitments in relation to investments and growth in both countries.
As part of further efforts to make clear the deal is a merger rather than a takeover, the company will have its global and corporate headquarters in Ohio and its “international headquarters” in London. The company, which will be known as Worldpay, will have a primary listing in the US and a secondary listing in the UK.
The firm will also have co-chief executives, Worldplay’s Philip Jansen and Vantiv’s Charles Drucker, while the board will be comprised of five Worldplay directors – including outgoing BT chairman Sir Mike Rake – and eight Vantiv directors.
Under the deal, which values Worldpay at £9.3bn and gives the combined group a value of £22.2bn, Vantiv shareholders will own 57 per cent of the company.
The companies are aiming to generate cost savings of $200m a year, with 63 per cent of these estimated to come from the US side.
In total, Freeman and Co estimates that the big banks working on the deal – Goldman Sachs, Barclays, Morgan Stanley and Credit Suisse – will have pulled in $70m in fees between them.
Read more: Worldpay-Vantiv merger: It's on