V Feb 2020 182.500 call

OPR - OPR Delayed price. Currency in USD
7.70
0.00 (0.00%)
As of 3:44PM EST. Market open.
Stock chart is not supported by your current browser
Previous close7.70
Open17.45
Bid0.00
Ask0.00
Strike182.50
Expiry date2020-02-28
Day's range7.45 - 17.45
Contract rangeN/A
Volume139
Open interestN/A
  • Thousands ask for free ATMs as system reaches 'verge of collapse'
    Yahoo Finance UK

    Thousands ask for free ATMs as system reaches 'verge of collapse'

    Communities have been hit hard with 9,500 free-to-use cash machines removed from across the UK in last two years, according to Which?

  • Corona Crisis = Ripening Buys
    Zacks

    Corona Crisis = Ripening Buys

    The US equity markets, which appeared to be immune to the early onset of the coronavirus, are now infected with fear

  • Bloomberg

    Credit Karma Founder to Get Billion-Dollar Windfall From Sale

    (Bloomberg) -- Ken Lin co-founded Credit Karma Inc. in 2007 after struggling to find out his own credit score. That’s something he probably won’t need in the future.Intuit Inc. -- the software giant behind TurboTax -- said Monday it’s buying Credit Karma for about $7.1 billion in cash and stock. The firm, which offers free credit scores and help applying for cards and loans, has more than 100 million members and reported unaudited revenue of nearly $1 billion in 2019, according to a company statement.Lin, 44, who owns at least 15% of the San Francisco-based company, is poised for a ten-figure windfall, according to calculations by the Bloomberg Billionaires Index, the latest fintech founder to strike gold in recent months as more established firms snap up upstarts.It caps a remarkable rise for Lin, who as a child immigrated to the U.S. from China with his parents and was the first of his family to graduate from college. The founder is far from the stereotypical staid financial planner. Described as an adrenaline junkie, he once took his company’s board on dune buggy rides in Las Vegas and is known for hitting the dance floor at his firm’s holiday parties.Credit Karma declined to comment on Lin’s net worth.Others geting windfalls include co-founders Nichole Mustard, 47, and Ryan Graciano, 38, as well as firms such as Silver Lake, Ribbit Capital and QED Investors, a Virginia-based outfit that led the first investment round.The startup’s hefty price tag contrasts with its early days.It initially struggled to raise funding from venture capitalists and its first office was an apartment located by a San Francisco overpass and above Kate O’Brien’s Irish Bar & Grill. The company has since moved to fancier digs near Union Square whose amenities include a nail salon.While Silicon Valley has witnessed plenty of lackluster public offerings recently, there’s still demand for financial tech companies from larger rivals.George Ruan and Ryan Hudson, the co-founders of Honey Science Corp. pulled in $1.5 billion after completing the $4 billion sale of their firm to PayPal Holdings Inc. Plaid Inc. co-founders Zach Perret and William Hockey will collect hundreds of millions of dollars each after selling their company to payments giant Visa Inc. for $5.3 billion in January.Intuit’s share price rose 2.5% to $293.60 at 10:13 a.m. in New York on Tuesday.(Updates with details of Intuit share price in final paragraph.)To contact the reporters on this story: Tom Metcalf in London at tmetcalf7@bloomberg.net;Julie Verhage in New York at jverhage2@bloomberg.netTo contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Steven CrabillFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • CNA Financial, The Mosaic Company, United Airlines, Chase Credit Card Services and Visa highlighted as Zacks Bull and Bear of the Day
    Zacks

    CNA Financial, The Mosaic Company, United Airlines, Chase Credit Card Services and Visa highlighted as Zacks Bull and Bear of the Day

    CNA Financial, The Mosaic Company, United Airlines, Chase Credit Card Services and Visa highlighted as Zacks Bull and Bear of the Day

  • Visa A Stock Falls 4%
    Investing.com

    Visa A Stock Falls 4%

    Investing.com - Visa (NYSE:V) A Stock fell by 4.02% to trade at $190.75 by 13:55 (18:55 GMT) on Tuesday on the NYSE exchange.

  • Reuters - UK Focus

    British fintech Revolut hits $5.5 billion valuation after funding round

    Digital banking app Revolut has raised $500 million in a fresh funding round, confirming the British-based business as one of the world's most valuable financial technology firms with a valuation of $5.5 billion. The Series D funding round was led by U.S. investment firm TCV - which has previously backed Netflix, Spotify and Airbnb - and takes the total amount raised by Revolut to $836 million. Revolut has attracted more than 10 million customers since its launch in 2015 by offering slick money management tools and undercutting traditional banks on pricing for foreign exchange, stock trading and money transfers.

  • Mastercard Cuts Revenue Forecast as Coronavirus Hits Travel
    Bloomberg

    Mastercard Cuts Revenue Forecast as Coronavirus Hits Travel

    (Bloomberg) -- Mastercard Inc. lowered its three-week-old forecast for quarterly revenue growth as the spreading coronavirus curbs international travel and even takes a bite out of e-commerce, a business executives had hoped would be immune.The credit-card network said it’s knocking 2 to 3 percentage points off the prediction it made on an earnings conference call Jan. 29. That translates to growth of 9% to 10% on a currency-neutral basis, excluding acquisitions, it said Monday. Shares of Mastercard and Visa Inc. dropped in after-hours trading.“Cross-border travel, and to a lesser extent cross-border e-commerce growth, is being impacted,” Mastercard said in a statement. “There are many unknowns as to the duration and severity of the situation and we are closely monitoring it.”The short-lived forecast underscores how quickly the virus is altering consumer behavior as it moves beyond China. Mastercard executives had previously taken comfort in the fact that much of the firm’s business into and out of China is e-commerce, which could potentially continue amid measures to contain the disease.“It provides some level of a hedge,” Chief Financial Officer Sachin Mehra had told analysts on Jan. 29. But even back then, Chief Executive Officer Ajay Banga quickly cautioned that the firm would “take a look at those numbers once again” if the crisis worsened and affected more parts of the globe.On Monday, United Airlines Holdings Inc. withdrew its 2020 profit forecast, also citing the virus.Mastercard’s shares fell 4.4% during regular trading Monday after a spike in infections in countries including South Korea and Italy triggered a global selloff. The stock then dropped an additional 1.1% after hours at 6:30 p.m. in New York. Visa fell 1.7%.If the impact of the virus is limited to the first quarter, annual net revenue growth will probably be at the low end of the low-teens range, Mastercard said on Monday, noting that it plans to give further updates on its next earnings call.Visa CEO Al Kelly told investors at his company’s investor day Feb. 11 that it was “too early to tell” what impact the virus might have on results.“But if planes are not flying in and out of China, if hotels are not being filled -- which they’re not at the moment -- and if the supply chains are being impacted -- which I suspect they are -- there is going to be some impact,” Kelly said.(Updates with stock moves, background on forecast and Visa from second paragraph)To contact the reporter on this story: Jenny Surane in New York at jsurane4@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, David Scheer, Boris KorbyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Intuit Buys Credit Karma for $7.1 Billion in Cash, Stock

    (Bloomberg) -- Intuit Inc., the software giant behind TurboTax, is buying personal finance website Credit Karma Inc. for about $7.1 billion in cash and stock.San Francisco-based Credit Karma has garnered more than 100 million users by offering free credit scores since it was founded in 2007. The financial technology startup offers other services too, including the ability to apply for a credit card, find an auto loan or start a savings account. The combination will help consumers manage debt, maximize savings and have better access to credit cards and loans, Intuit said in a statement Monday.Fintech companies are at a crossroads where a number of them are established enough to go public, but a spate of poor-performing IPOs are making acquisitions more attractive. At the same time, incumbent companies aren’t afraid to snap up startups as a way to fuel their own growth. “The fertile M&A market, shift to growth stage investments, and rich valuations open the door for a lot of discussions, as well as distractions,” said Lindsay Davis, an analyst at CB Insights. “Fintech startups will have a choice to take a deal or buckle down and focus on filling product gaps.”Perhaps most similar to Intuit, Credit Karma also launched a free tax-filing platform a few years ago and has been trying to poach customers of Intuit’s TurboTax offering.More than 30 million users log into Credit Karma every week, the company has said. These users don’t pay the company for any of its services, and Credit Karma makes money through an affiliate fee it receives when someone successfully applies for a loan or credit card on its platform. Credit Karma generated almost $1 billion in unaudited revenue last year, up 20% from 2018, Intuit said.Intuit also reported fiscal second-quarter results, with revenue up 13% in the period to $1.7 billion, topping the average analyst estimate of $1.68 billion. Net income rose 27% to $240 million, or 91 cents a share, in the three months ended Jan. 31. The company reiterated its fiscal 2020 outlook for revenue of $7.44 billion to $7.54 billion. The transaction is expected to be neutral or add to Intuit’s adjusted earnings per share in the first full fiscal year after the transaction closes, the company said.The deal is only the latest in a slew of acquisitions in the industry. Morgan Stanley recently announced plans to buy E*Trade Financial Corp. for $13 billion, while Visa Inc. agreed to acquire Plaid for $5.3 billion in January.Late last year, PayPal Holdings Inc. snapped up online coupon company Honey Science Corp. for $4 billion and Charles Schwab Corp. is acquiring TD Ameritrade Holding Corp. for $26 billion.QED Investors, Ribbit Capital and Founders Fund were early backers of Credit Karma.(Updates with Intuit earnings results in sixth paragraph.)To contact the reporter on this story: Julie Verhage in New York at jverhage2@bloomberg.netTo contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Linus Chua, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • United Airlines Extends Association With Chase and Visa
    Zacks

    United Airlines Extends Association With Chase and Visa

    United Airlines Holdings (UAL) unit United Airlines' extended contract with the two credit card companies highlights the growing importance of co-branded card partnerships in the airline space.

  • The Zacks Analyst Blog Highlights: Visa, JPMorgan Chase, Bank of America, AstraZeneca and Duke Energy
    Zacks

    The Zacks Analyst Blog Highlights: Visa, JPMorgan Chase, Bank of America, AstraZeneca and Duke Energy

    The Zacks Analyst Blog Highlights: Visa, JPMorgan Chase, Bank of America, AstraZeneca and Duke Energy

  • Bloomberg

    Does This Investment Make Me Look Good?

    (Bloomberg Opinion) -- One of the trendiest ideas in finance is something called “social impact investing,” which is the idea that people should put more money into socially beneficial companies and products, and less into socially harmful ones. That hardly sounds objectionable, but I am skeptical about how much good social impact investing can do.The first risk is that social impact investing will be used to “whitewash” various harmful policies. By divesting from a particular set of companies, an investment fund loses at most a very small benefit from an additional degree of broader market diversification. The fund still is likely to earn the market rate of return on its other investments, and in the meantime it can claim virtuousness. At the same time, the funds can pursue socially harmful policies elsewhere: investing in companies that lobby for tariff protection, say, or emit less visible forms of pollution, or how about refined sugar?A second risk is that social impact investing simply redistributes wealth from investments — maybe to less socially conscientious individuals. Imagine a socially conscious investment firm that declines to participate in the initial public offering of a company that pollutes the ocean. That might create downward pressure on the price of the IPO. But there is a problem: The value of the actual investment has not declined, so at a potentially lower IPO price other investors will step in to fill the demand. In fact, those investors may have the chance to buy at a discount and earn a higher return than otherwise.The net result is that conscientious investors have missed out on a profitable opportunity, while less socially aware investors have earned more. Over time, the less socially aware investors will become richer, and their greater wealth may translate into greater political and economic influence.Maybe this effect isn’t large, but it is negative, and it will become correspondingly larger to the extent social impact investing becomes more popular (in 2018, the money pouring into sustainable investment funds quadrupled, rising to about $21 billion). That doesn’t sound like an appealing trade-off.But put that worry aside and assume that social impact investing simply makes it easier to get a solar power company off the ground with an IPO or an expansion. It’s still not clear that much has been gained. At that late point in the process, the company will succeed or it won’t, no matter what the socially conscious funds do.If anything, it would be more useful to have socially conscious research and development at the very early stages of projects. To some extent there are such investments, and I am more sanguine about being conscientious then than when companies already exist and funds are making investment decisions.It is also difficult to monitor the performance and social efficacy of the funds focused on doing good. In actively managed sustainable equity funds, for example, the most commonly held stocks are estimated to be Microsoft, Alphabet, Visa, Apple and Cisco. I have nothing against those companies, but you have to wonder exactly how much social improvement those investment funds are buying.Norway’s fossil fuel divestment is well-publicized. Less well known is that it exempted Shell and Exxon. There simply aren’t clear benchmarks for which investments to avoid, and of course some critics will portray technology companies as the embodiment of evil.Too many of the empirical arguments for social impact investing stem from a single example: South Africa under apartheid. In that case, a coordinated campaign of divestment and international economic and social pressure did hasten the end of apartheid, all for the better. But most sanctions are not very effective at achieving their stated political goals, or their effectiveness may be unclear. South Africa may have been a special case because it was relatively small and isolated, and because so many South Africans had ceased to believe in apartheid.Investment in socially beneficial activities can be worthwhile. But it ignores the question of who decides what is “beneficial,” and it is yet another example of how politics and media are becomingly increasingly performative. Everything is about looking good instead of substance. It is increasingly difficult for businesses and investment funds to perform their proper work under the glare of perpetual debate and periodic condemnation.The notion of extending that same glare to economic investments makes is hardly reassuring. I’ve yet to see a conception of social impact investing that I find convincing.To contact the author of this story: Tyler Cowen at tcowen2@bloomberg.netTo contact the editor responsible for this story: Michael Newman at mnewman43@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tyler Cowen is a Bloomberg Opinion columnist. He is a professor of economics at George Mason University and writes for the blog Marginal Revolution. His books include "Big Business: A Love Letter to an American Anti-Hero."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Visa A Stock Falls 6%
    Investing.com

    Visa A Stock Falls 6%

    Investing.com - Visa (NYSE:V) A Stock fell by 6.21% to trade at $195.85 by 09:30 (14:30 GMT) on Monday on the NYSE exchange.

  • Top Stock Reports for Visa, JPMorgan & Bank of America
    Zacks

    Top Stock Reports for Visa, JPMorgan & Bank of America

    Top Stock Reports for Visa, JPMorgan & Bank of America

  • Visa (V) and Accor Form Partnership to Launch Payment Card
    Zacks

    Visa (V) and Accor Form Partnership to Launch Payment Card

    Visa (V) enters into a partnership with Accor to bring new payment experiences to the ALL loyalty members.

  • Business Wire

    Accor and Visa Form Global Partnership

    Today, Accor, a world-leading hospitality group, and Visa (V: NYSE), the global leader in digital payments, announced a global partnership to bring new payment experiences to ALL-Accor Live Limitless loyalty members.

  • Ubben’s ValueAct Capital Buys Into BP On Carbon-Cutting Pledge
    Bloomberg

    Ubben’s ValueAct Capital Buys Into BP On Carbon-Cutting Pledge

    (Bloomberg) -- BP Plc’s ambitious plan to go green is winning accolades from at least one high-profile investor.ValueAct Capital Management started building a position in BP after an “inspired” presentation Wednesday from the energy giant’s new boss about his plans to eliminate almost all its carbon emissions, according to ValueAct Chairman Jeff Ubben.The bet is on BP Chief Executive Officer Bernard Looney’s vision for the oil and gas company, which goes far beyond any of its peers, Ubben said in an interview. While Ubben had been studying the company for a while, he was inspired to buy shares during Looney’s pledge to cut greenhouse gas emissions from operations and production to net zero within 30 years.“I just started buying while I was watching,” Ubben said. “Someone needs to stand up and reward these guys.”The investment was made through the $1 billion ValueAct Spring Fund, which is focused on social and environmental investing, Ubben said. BP’s strategy is exactly the sort of investment the fund is looking for, he said. He didn’t disclose the size of his stake.While peers including Royal Dutch Shell Plc, Total SA and Equinor ASA have responded to investor pressure by adopting targets for emissions curbs, none has promised to zero them out like BP.It highlights the perils of investing in companies with so-called environmental, social and governance agendas, Ubben said.“ESG is total crap,” Ubben said, noting that the five most owned stocks in ESG funds are Microsoft Corp., Alphabet Inc., Visa Inc., Apple Inc. and Cisco Systems Inc.. “It is worse than greenwashing, since these investors ignore the externalities of Google mining your privacy; Visa earning monopoly rents on the back of small business; and Apple’s extractive business model of selling you a new phone full of mined materials as often as possible.”He said to actually have an impact, investors have to get involved with the companies where their core business deals directly with the biggest problems of the day, which he said is climate change. To that end, he said the ValueAct Spring Fund has joined the board of power producer AES Corp. to help facilitate its move away from fossil fuels and the private board of Nikola Corp.Representatives for Apple, Visa, and Alphabet weren’t immediately available for comment.ValueAct on Wednesday also was granted a seat on the board of Hawaiian Electric Industries Inc. Eva Zlotnicka, managing director of the Spring Fund, will join the board and also sit on its compensation committee.ValueAct, which owns a 1.5% stake in the utility, had urged Hawaiian Electric to look externally for a successor to CEO Constance Lau in a November letter to stakeholders, arguing it needed a shift in corporate culture. ValueAct also raised concerns that the company wouldn’t reach its renewable targets.“As an island economy, sustainability is must,” Ubben said. “It is an inspired place, with legislative and regulatory leadership that wants to reward innovation. Hawaiian Electric management and board have taken on the challenge to move faster off of base-load oil.”The San Francisco-based hedge fund disclosed its original stake in Hawaiian Electric in October 2018 through the Spring Fund. Total shareholder returns since ValueAct disclosed its position have been about 38%, according to data compiled by Bloomberg.Last month, Ubben, the founder of ValueAct, was replaced as CEO of the activist firm by Mason Morfit. Ubben remains chairman and will continue to help run the Spring Fund.\--With assistance from Laura Hurst.To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Michael HythaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Visa Rises as Wall Street Likes Its Post-Investor Day Potential
    Bloomberg

    Visa Rises as Wall Street Likes Its Post-Investor Day Potential

    (Bloomberg) -- Visa Inc. gained as much as 2.1%, the most since mid-January, after hosting its first investor day in three years on Tuesday. Analysts pointed to strong growth trends and new ways to boost consumer payment flows.Here’s a sample of the latest commentary:Morgan Stanley, James FaucetteThe investor day “should help quell concerns from potential investors over disruption risk, as Visa showed its integral role in perpetuating industry growth, including for fintechs, banks and acquirers,” Faucette wrote in a note.“The consumer payments runway looks robust,” he added, with long-term “opportunity to monetize other payment flows.” Visa has also “cemented its position as a key promoter of faster digital payments by highlighting its work with transit systems, remittance companies.” At the same time, Faucette said there may be some “noise” ahead from foreign exchange and volumes growth in China. He rates the stock overweight with a price target of $240.Bernstein, Harshita RawatIn comparison to Visa’s last investor day three years ago, there was an “immense focus on, granularity of strategy and visible progress towards the next leg of growth – expansion into new flows,” Rawat wrote in a note.She added that Visa “hammered home the secular growth opportunity in consumer-to-business payments with interesting spotlights on battleground areas such as emerging markets (e.g., India) and cash-heavy developed markets (e.g., Germany, Japan).” And contactless and e-commerce remain “powerful catalysts for cash digitization,” she said.Bernstein remains bullish on Visa and believes the “investor day will start to change the narrative on slower growth versus Mastercard.”KBW, Sanjay Sakhrani“The company did a solid job making the case that the growth story remains strong and the future is as bright as the past,” Sakhrani wrote in a note. The steps Visa is taking to be “more accessible (via partnerships), robust (via the network of network strategy) and deeper (through value-added services) is a formula that will yield significant returns,” he added.Sakhrani still sees Visa as a “compelling long-term growth story” and reiterated his outperform rating and $245 price target.Nomura Instinet, Bill CarcacheCarcache believes Visa’s “three-pronged strategy positions it to sustain double-digit revenue growth and mid-teens EPS growth for years to come.”At the same time, he added that the company’s investments are likely to keep expense growth elevated in the near-term. He reiterated his buy rating on the shares.UBS, Eric Wasserstrom“The central theme of Visa’s investor day was that, by virtue of its pivot to become a network-of-networks, it is evolving from a consumer payments company to a broader money movement ecosystem,” Wasserstrom wrote.That pivot may extend Visa’s “relevance into several new payment flows – opening significant new TAM – and the financial implication is that Visa should sustain low double digit revenue growth longer term,” he said. The investor day affirmed Wasserstrom’s “focus on the opportunities from new flows,” but didn’t alter his current financial forecasts.To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    Exceptional Women in the American Payments Industry Recognized at the Women in Payments Awards Ceremony

    Women in Payments recognized exceptionally talented leaders and rising stars in the payments industry at the annual Women in Payments symposium in Washington, DC, on February 10.

  • Oscars 2020: Lupita Nyong'o on how winning an Oscar changed her relationship with money
    Yahoo Finance

    Oscars 2020: Lupita Nyong'o on how winning an Oscar changed her relationship with money

    For actress Lupita Nyong’o, winning an Oscar for “12 Years a Slave” back in 2014 set her on a very different career path and changed her relationship with money.

  • Fintech's Consolidation Creates Investment Opportunities
    Zacks

    Fintech's Consolidation Creates Investment Opportunities

    Fintech's Consolidation Creates Investment Opportunities

  • Visa planning biggest changes to U.S. swipe fees in a decade - Bloomberg
    Reuters

    Visa planning biggest changes to U.S. swipe fees in a decade - Bloomberg

    Interchange rates of the world's largest payment processor will go up or down depending on the merchant and the way consumers pay for their purchases, the report said. "Based on the most recent review in the U.S., Visa is adjusting its default U.S. interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products," Visa said in the document.

  • Visa planning biggest changes to U.S. swipe fees in a decade: Bloomberg
    Reuters

    Visa planning biggest changes to U.S. swipe fees in a decade: Bloomberg

    Visa Inc is planning the biggest changes in a decade to the rates U.S. merchants pay to accept its cards, Bloomberg reported https://bloom.bg/2vGWtA7 on Tuesday, citing a document Visa sent to banks. Interchange rates of the world's largest payment processor will go up or down depending on the merchant and the way consumers pay for their purchases, the report said. "Based on the most recent review in the U.S., Visa is adjusting its default U.S. interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products," Visa said in the document.

  • Visa Inc. First-Quarter Results: Here's What Analysts Are Forecasting For Next Year
    Simply Wall St.

    Visa Inc. First-Quarter Results: Here's What Analysts Are Forecasting For Next Year

    Last week saw the newest first-quarter earnings release from Visa Inc. (NYSE:V), an important milestone in the...

  • This $8.6 Billion Fintech Is Not Quite Cheap Enough
    Bloomberg

    This $8.6 Billion Fintech Is Not Quite Cheap Enough

    (Bloomberg Opinion) -- Consolidation in the digital payments industry has traditionally meant bold deals to buy fast-growing assets at sky-high valuations — with the acquirers often cheered on blindly by investors. Worldline SA has chosen a different path: A modestly expensive deal to buy struggling French peer Ingenico Group SA. Shareholders have frowned. Worldline Chief Executive Officer Gilles Grapinet must be wishing he’d stuck with convention.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. Late 2018 brought a management and strategy reset with the appointment of former Visa executive Nicolas Huss as CEO. Natixis SA, a French bank, dropped plans for a possible takeover not long afterwards, sending Ingenico shares to just 45 euros apiece. Just over a year later, Worldline is offering a combination of cash and its own stock that’s worth 123.10 euros a share based on its last closing price. That values Ingenico’s equity at 7.8 billion euros ($8.6 billion).Maybe Worldline should have moved sooner, but it would have struggled to coax its target to the table before now. An attempt at a deal last year would have been blatantly opportunistic, with Ingenico’s shares on the floor, and Huss’s elevation has bolstered the company’s bid defenses. Grapinet would have needed to offer a much bigger premium than the 17% that has secured this deal. What’s more, the transaction value of 15 times expected 2020 Ebitda is relatively sober in this part of the fintech sector. Fidelity National Information Services Inc. paid 29 times trailing Ebitda for Worldpay Inc. in July. Denmark’s Nets A/S succumbed to a leveraged buyout at 18 times Ebitda in 2018.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%. Worldline reckons it can extract 250 million euros of financial benefits come 2024, when analysts forecast Ingenico could generate about 720 million euros in operating profit. Adjusting for tax, the returns might then get to a more reasonable 8%. Still, investors have to wait for it.What's more, Worldline’s board would expand to an unwieldy 17 members, including a director from the French state investment bank.Might things turn out better than Worldline’s shareholders believe? Grapinet has some options to do more than simply finish the recovery that Huss has started. One possibility would be carving out Ingenico’s terminals business and auctioning it to private equity firms. That would leave him with faster growing operations and help bring down net debt, which is likely to touch 2.5 times Ebitda after paying 2 billion euros for the cash part of the deal.It’s a reasonable piece of M&A, but no more. Investor caution is understandable. There may be higher quality targets out there. The snag is that Grapinet would have to overpay even more to get them.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Payment-Services Giant Worldline to Buy Ingenico in $8.6 Billion Deal
    Bloomberg

    Payment-Services Giant Worldline to Buy Ingenico in $8.6 Billion Deal

    (Bloomberg) -- Worldline SA agreed to buy rival Ingenico Group SA in a 7.8 billion-euro ($8.6 billion) deal the French technology companies say will form one of the largest payment-services providers.The two companies had been circling each other for years, and Worldline Chief Executive Officer Gilles Grapinet said on a conference call Monday that Ingenico’s reorganization last year made it the right time to bid.The takeover – the biggest of the year so far in Europe – continues last year’s spate of payments company mergers, which included a series of major deals from Fiserv Inc., Fidelity National Information Services Inc. and Global Payments Inc.Ingenico shareholders will receive 123.10 euros a share in cash or a mixture of cash and shares, the companies said Monday. That’s 17% higher than the stock’s last closing price. Worldline is also offering to buy bonds that are convertible into Ingenico shares. Worldline shareholders will own about 65% of the combined company.Ingenico gained as much as 14% in Paris on Monday, rising to 119.9 euros, the biggest intraday move in more than a year. Worldline fell as much as 8.6%.The deal looks “very positive” for Worldline at first glance, giving the company an opportunity to add to its European leadership team and increase its market share, analysts at Bryan Garnier & Co. said in a note Monday. The combined company will also have a more diversified profile than its U.S. peers, they said.Read more about Ingenico’s management shakeup here.The deal comes after a number of challenging years for Ingenico, which provides payments processing services to customers including banks, retailers and e-commerce sites, and is one of the few large firms to remain independent in the rapidly consolidating payments industry in Europe.Ingenico for years has been pushing to refocus from its legacy business -- capturing transactions on behalf of banks or credit card companies using hardware terminals in stores -- toward new services in areas like online shopping.In November 2018, Ingenico CEO Philippe Lazare was removed following a request from the board. Lazare, who led the company for 11 years, had been under increasing pressure over its performance and management struggled to convince investors of the merits of its legacy terminals business.Ingenico has since recovered, its shares more than doubling in the past year after Chief Operating Officer Nicolas Huss took over as CEO in a move many thought could lead to a potential deal. The same month, Natixis SA declined to bid for Ingenico after holding preliminary talks.“Timing is everything,” Grapinet said when asked on a call with analysts why the company didn’t attempt to buy Ingenico last year. “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.”Worldline was spun out of French computer-services provider Atos via an initial public offering in 2014, and with a 11 billion-euro market value is now bigger than its previous owner. In 2018 Worldline snapped up SIX Group AG’s payments business for 2.3 billion euros, in one of the first deals that sparked the ongoing wave of consolidation in the industry.“The combination of Worldline and Ingenico offers a unique opportunity to create the undisputed European champion in payments,” Ingenico Chairman Bernard Bourigeaud said in a statement Monday. “This transaction comes at the time of accelerating consolidation of the industry.”French state investor and Ingenico shareholder Bpifrance Financement SA said it “fully supports” the deal and in a statement said it was “committed to contribute its Ingenico shares to Worldline’s public offer and intends to become a long-term reference shareholder of the combined entity.” Bpifrance owns about 5.3% of Ingenico shares according to data compiled by Bloomberg.SIX Group and Atos, Worldline’s largest shareholders, are also in favor of the deal.Payments dealmaking may be set to continue. Worldline will become the “platform of choice for further consolidation in Europe” Grapinet said on the call.Investors have been keen to cash in on alternatives to traditional banking services. Vista Equity Partners is considering selling a stake in Finastra in a deal that could value the company at more than $10 billion including debt, Bloomberg News reported in October.Earlier in January Visa Inc. agreed to pay $5.3 billion for Plaid, a fintech firm that connects popular apps like Venmo to customers’ data in the established banking system.The combined market value of Ingenico and Worldline will be about 19 billion euros as of trading Monday, leapfrogging rival Wirecard AG.(Updates with context throughout, share price, comments from analyst call)\--With assistance from Tara Patel and Thomas Mulier.To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate LanxonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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