Mergers and Acquistions News
Categories: IT Services & Consulting
August 6th 2010, 16:02PM
A consortium of Advent International and Bain Capital have acquired 80.01 per cent of WorldPay, the Royal Bank of Scotland's (RBS) online merchant system, for up to £2.025 billion.
Advent and Bain are both global private equity firms.
RBS will retain a minority stake of 19.99 per cent in WorldPay (also known as Global Merchant Services, or GMS), and will still promote and refer to the product as part of its service to customers.
WorldPay is an electronic transaction product that provides payment solutions for thousands of ecommerce retailers.
After goodwill, separation and transaction costs, the divestment will net RBS around £850 million.
RBS said it welcomed Advent and Bain after having seen evidence of commitment from both firms to make investments in technology services.
The sale is expected to complete in the fourth quarter of this year and is awaiting approval from the European Commission and US anti-trust authorities, among other regulators.
Bruce Van Saun, RBS group finance director, said: "The sale of GMS is another significant milestone in the Group's restructuring programme. GMS is an excellent business. The transaction will be good for both staff and customers as the business implements its ambitious expansion plans."
It's certainly something of a change in fortunes for RBS, which is now publicly-owned by the taxpayer. Its January to June pre-tax profit stands at £1.14 billion, a massive jump from the £15 million it posted for the same period last year.
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