Apollo Global Management Inc. and Worldline have entered into exclusive talks for the New York-based buyout company to acquire Worldline’s terminal business for 2.3 billion euros ($2.60 billion).
The European payments company said Monday that the binding offer it received includes an upfront payment of EUR1.7 billion, and preferred shares that could reach up to EUR900 million in value depending on the future value creation of the terminal business.
Still, the total consideration amounts to EUR2.3 billion based on the current valuation of the preferred shares.
The announcement comes after The Wall Street Journal reported that Apollo and Worldline were nearing a deal. Worldline had begun a strategic review of the business, including a possible sale, in October 2020.
“This contemplated transaction, while being fundamentally triggered by the best interest of Terminals, Solutions & Services, will also simplify our group structure, further increase our focus on our core activities and massively deleverage our balance sheet allowing the acceleration of our next strategic developments towards establishing Worldline as a truly global Paytech leader,” Worldline Chief Executive Gilles Grapinet said.
The transaction is expected to close in the second half of 2022, Worldline said.