Vantiv Buys Mercury Payment From Silver Lake for $1.65 Billion

Vantiv Inc., a provider of payment-processing services to retailers and financial institutions, agreed to pay $1.65 billion to acquire Mercury Payment Systems Inc.

The purchase will add one to two percentage points to Vantiv’s revenue growth per year, Symmes Township, Ohio-based company said in a statement yesterday. Durango, Colorado-based Mercury, which is majority-owned by Silver Lake Management LLC, will withdraw its filing for an initial public offering, according to the statement.

Mercury’s technology is used by restaurants and small- and and medium-sized businesses to process payments and create pre-paid gift cards. U.S. consumer spending using cards and other electronic payments should grow to $7.23 trillion in 2015 from $4.48 trillion in 2009, driven by the shift away from cash and checks, Vantiv says on its website, citing industry newsletter the Nilson Report.

Vantiv, formerly a unit of Fifth Third Bancorp, rose 3.1 percent to $29.82 in New York yesterday, giving the company a market value of about $5.7 billion. Vantiv’s shares are up more than 75 percent since its March 2012 IPO.

Founded in 2001, Mercury had $237 million in revenue in 2013. Vantiv reported revenue of more than $2.1 billion last year, data compiled by Bloomberg show.

Vantiv was advised by Credit Suisse Group AG and Bank of America Corp., while Mercury was advised by Morgan Stanley, J.P. Morgan Chase & Co, Barclays Plc and Financial Technology Partners LP.

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