French payment services developer Wordline SA is buying rival Ingenico Group in a deal worth €7,8 billion.

As a result of the merger of the two companies, the world’s fourth largest payment services operator will be created, Wordline said in a press release.

Wordline plans to pay for the deal 81% in its own shares and 19% in cash. Ingenico shareholders will receive 11 Worldline shares and 160.5 euros for every 7 company shares. Thus, the proposed amount will exceed the average price of Ingenico securities for the last month by 24%.

The merged company will be represented in approximately 50 countries, its staff will be 20 thousand people. The number of its clients among trading companies will be 1 million, financial institutions – 1,2 thousand.

Worldline Chairman and CEO Gilles Grapinet will become CEO of the combined group. Worldline will receive 65% of the new company.

Ingenico Chairman Bernard Bourigault will become non-executive Chairman of the combined group.

Worldline plans to submit information about the transaction to the French regulator AMF in June or July 2020, expecting to close the transaction in the 3rd quarter of 2020.

Worldline’s revenue in 2019 increased to 2,38 billion euros from 2,23 billion euros in 2018. Ingenico last year increased revenue to 3,37 billion euros from 2,64 billion euros a year earlier.

The French company Ingenico was founded in 1980. Its products are represented in more than 170 countries around the world, with a staff of over 7.5 thousand people. Revenue in 2017 amounted to 2.51 billion euros (+9% compared to 2016), the company’s capitalization exceeds 4 billion euros.

Worldline shares are losing 6.2% in Paris trading on Monday, while the price of Ingenico shares jumped 9% – the fastest pace in a year.