This merger assumes significance midst the growing global clamour for going cashless.
In a significant development, French payments processing company Worldline has agreed to acquire Digital River World Payments (DRWP), its Swedish peer. The move marks a pickup in the merger activity in the payments sector.
Although Worldline did not disclose the quantum it had for the acquisition nor the terms of the acquisition, it is worth noting that DRWP’s gross revenues during 2015-2016 was $42.3 million (37 million euros).
“With the acquisition of DRWP, we are accelerating the execution of our strategy in Merchant Services and significantly increasing both our internet payment capabilities and our global reach to support international merchants and large retailers,” said Gilles Grapinet, Worldline’s Chief Executive in a statement.
Earlier this month, Vantiv, a U.S. credit card processing company had agreed to buy Britain’s Worldpay for $10 billion (7.7 billion pounds).
In a world dominated by credit card and mobile payments, payment processing companies have tended to come targets for acquisitions by credit card companies and banks who are seeking to capitalize on the move towards a cashless economy.