The Merger Announcement
Earlier this month, a major move in the fintech world was announced: French giants Ingenico and Worldline are merging in a historic deal valued at €7.8 billion (approximately $8.6 billion). The acceptance from shareholders in both companies marks a significant step in the evolution of payment solutions, and the implications are ripe for discussion.
What’s in It for Shareholders?
As part of the merger agreement, Ingenico’s shareholders are in for a treat with a mix of cash and stock offerings, including a sweet 17% premium based on the stock’s trading figures from Monday. Essentially, the shareholders of Worldline will primarily dominate the new entity, claiming a robust 65%, while Ingenico investors will take hold of the remaining 35%—it’s not quite Monopoly money, but it’s a solid deal nonetheless!
Paying Attention to the Payments Industry
This merger isn’t just a one-off event in the industry’s landscape. In fact, it follows a larger trend of consolidation in the payment space—in January, we saw Visa acquire the fintech startup Plaid, which also dipped its toes into the cryptocurrency pool. Are we witnessing the dawn of a corporate shuffle where giants are gathering their forces? Only time will tell!
Crypto Exposure: What’s Cooking?
Speaking of dipping toes, both companies have had a history with cryptocurrency. Worldline is involved in a gamut of services that runs the spectrum from Point of Sale (POS) terminals to online merchant services. Ingenico is well-known for its POS devices, but it hasn’t shied away from diversifying its operations either. Notably, back in 2019, Ingenico partnered with crypto-focused startup Pundi X to roll out crypto-friendly POS devices. They were also part of an initiative in Austria to make crypto payments possible in telecom stores—who said crypto can’t get you some cool gadgets?
What Lies Ahead?
A lot hinges on how the newly merged company will navigate the crypto landscape. As Gilles Grapinet, CEO of Worldline stated, while timing is everything, the board of Ingenico might not have been ready to sell until this point. With the stock prices soaring and crypto becoming increasingly mainstream, the future looks intriguing. Although no formal statement has been made regarding their stance on crypto post-merger, indications point towards a positive outlook. Are we ready for more merchants accepting crypto, or will it be limited to online purchases? Stay tuned for updates!
“Timing is everything. If you look at the stock price, it could’ve been a bargain, but I’m not sure the board of Ingenico would’ve been ready to sell.” – Gilles Grapinet, CEO of Worldline
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