Worldpay agrees £9.3bn merger with Vantiv

Worldpay shareholders have been offered 0.55p a share in cash, 0.0672 of a new Vantiv share and a 4.2p dividend, valuing Britain's biggest credit card payments processor at £9.3bn and meaning the UK company's shareholders will own 43% of the combined group, up from the 41% initially mooted.

The two companies said they expected annual cost savings of $200m to be reached three years after merger completion.

The deal is expected to completed in early 2018 and the merged company will be called Worldpay. The merged company will be led by Vantiv's Charles Drucker as executive chairman and shareing chief executive duties with Worldpay's Philip Jansen.

Worldpay also said first half pre-tax profits fell to £128.9m from £168.6m, interim revenues rose 18% to £2.5bn with underlying earnings up 14% to £247.5m.

Free cash flow fell to £60.3m from £82.9m, reflecting higher tax and increased investment.

Worldpay's guidance for medium-term net revenue growth remained unchanged and the company said it was confident in its prospects for the second half.

The interim dividend was lifted 23% to 0.8p a share.