MGI Research

Saturday, Sep 19th

Last update02:07:16 AM GMT

Worldline to Acquire Digital River World Payments

On July 17 2017 Worldline S.A. announced that it has reached an agreement to acquire Digital River World Payments (DRWP) from its private equity owner Siris Capital Group.  

The Payments industry is consolidating from the top-down e.g. Vantiv acquiring WorldPay for $10Bn, bottom up with several recent deals below $20m and now at the mid-tier with Worldline acquiring the payments business of Digital River. 

DRWP is based in Sweden and will provide Worldline with access to key market in North and Latin America in addition to Scandinavia. We estimate trailing DRWP revenue at US$35-40Mil and a transaction value of around $100Mil. 

Worldline is a leading European payment processing company based in France. Previously it has acquired PaySquare and has created a joint venture with Equens. The company is majority owned (>70%) by the French IT consulting and systems integration company Atos. 

As we called out in our note on the WorldPay/Vantiv deal (Summer Heat: FinTech Heats Up), Worldline was one of the players expected to make a move in this consolidation play.

See the research note attached below for analysis of the impact of this transaction.

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