RBS receives multiple bids for WorldPay
(12 April 2010 – USA) Things are looking positive for the sale of the Royal Bank of Scotland’s Global Merchant Services business, including WorldPay, as offers come flooding in to the predominately government owned bank.
According to press reports, Nick Ogden, who sold WorldPay to the bank back in 2002, is looking to reacquire the payment processing service with the help of financial backers.
Other companies that have reportedly expressed interest include, French vendor Atos Origin, JP Morgan’s Chase Paymentech, Blackstone, Carlyle, CVC Capital Partners, Permira, TPG and Warburg Pincus have all also been reported as bidders.
The US processor Tsys has teamed with private equity group Silver Lake Partners on a bid and Advent International, who currently boasts a 51 percent share in the payments processor Fifth Third Bancorp, has reportedly collaborated with private equity firm Bain.
WorldPay made an operating profit of £276 million (A$454 million) in 2008 and is seen as an attractive proposition for private equity firms because of its high levels of recurring revenues.
Any deal is expected to value the business at between £2 billion and £3 billion. RBS has agreed to provide vendor financing and is prepared to retain a 20 percent stake in the unit, depending on the bids.
Other companies that have reportedly expressed interest include, French vendor Atos Origin, JP Morgan’s Chase Paymentech, Blackstone, Carlyle, CVC Capital Partners, Permira, TPG and Warburg Pincus have all also been reported as bidders.
The US processor Tsys has teamed with private equity group Silver Lake Partners on a bid and Advent International, who currently boasts a 51 percent share in the payments processor Fifth Third Bancorp, has reportedly collaborated with private equity firm Bain.
WorldPay made an operating profit of £276 million (A$454 million) in 2008 and is seen as an attractive proposition for private equity firms because of its high levels of recurring revenues.
Any deal is expected to value the business at between £2 billion and £3 billion. RBS has agreed to provide vendor financing and is prepared to retain a 20 percent stake in the unit, depending on the bids.
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