Worldline-Ingenico: $8.6 Billion Fintech's Not Quite Cheap Enough - Bloomberg

Payments consolidation continued this week with Worldline's $8.6bn bit for terminal manufacturer Ingenico. However, unlike Visa's $5.3bn bid for Plaid, Visa buying a new age technology player with much of the value is in perceived future opportunity, Worldline is buying an old school company with assets that might drive some near term value but who's future worth is questionable at best.

Ingenico has been a bid target for some time. It is weighed down by a handheld terminals business and has been playing catch-up in online payments...The lower valuation reflects the fact that Worldline is not acquiring a business firing on all cylinders. The deal starts to look more pricey when you consider what the buyer is getting. Based on Ingenico’s expected financial performance for 2020, the starting return on the total 9.5 billion euros all-in cost (including assumed net debt) would be just 4%.

That said, it seems like this has been the plan for a while. Bernard André Joseph Bourigeaud is the Chairman of the Ingenico board. He also just so happens to be the former Chairman and CEO of ATOS which, you guessed it, previously owned Worldline. Given his role in pushing out the former CEO, and the previous foreign private equity interest in Ingenico, I wouldn't be surprised if there was a desire to keep the French company French owned. This wave of consolidation in payments began in earnest a year ago with the formation of what I will forever call Fiserdata, and is showing no signs of slowing down.


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