MerchantSelect
 

Bain Capital and Advent International to acquire Global Merchant Services (WorldPay) from Royal Bank of Scotland

WorldPay is a credit-card payment processing services company

Aug 10, 2010 (Datamonitor Financial Deals Tracker via COMTEX) — The Royal Bank of Scotland Group plc (RBS) has agreed to sell an 80.01% interest in its Global Merchant Services (WorldPay) business to a consortium of private equity firms Bain Capital Partners, Inc. and Advent International Corporation for an enterprise value of up to GBP2,025 million.

WorldPay is a credit-card payment processing services company, while RBS is a banking and financial services group. Both WorldPay and RBS are based in the UK, while Advent and Bain are based in the US.

RBS will hold a minority stake in the new GMS group of 19.99%. As part of the agreement, RBS will continue to promote and refer the WorldPay product suite as a part of its offering to customers.

The sale is expected to complete in the fourth quarter of 2010.

Update on June 9, 2010:

According to the Financial Times, Bain and Advent are planning to submit a combined bid to acquire WorldPay from RBS.

Rumor (February 1, 2010):

According to Bloomberg, sources reported that Advent has submitted its bid for WorldPay from RBS.

The market value of WorldPay is estimated to be $3,000 million. RBS may retain a stake of as much as 20% in WorldPay depending on the buyer. RBS is selling WorldPay and other assets including branches and its insurance division after receiving GBP45,500 million of funding from the UK government.

Reportedly, Kohlberg Kravis Roberts & Co. L.P., TPG, Inc., Permira Advisers, LLP, The Blackstone Group L.P., BC Partners, Ltd., JPMorgan Chase & Co.’s Chase Paymentech, LLC, and U.S. Bancorp’s Elavon, Inc. are also in the race to acquire WorldPay.

UBS AG is managing the sale for RBS and Weil, Gotshal & Manges LLP is actintg as legal advisor to Advent International. Credit Suisse Group is acting as financial advisor to Advent International and Bain Capital.

Deal Value (US$ Million) 3215.25

Deal Type Private Equity

Sub-Category None

Deal Status Announced: 2010-08-06


Deal Participants

Target (Company) Global Merchant Services

Vendor (Company) The Royal Bank of Scotland Group plc (RBS)


Deal Rationale

The sale of GMS is another significant milestone in the RBS’s restructuring programme.

% Acquisition 80.01%