Worldline Shares of the company soared last week on rumors it could be the target of an acquisition.
As noted by Seeking Alpha on Friday (November 24), the French payments company increased by 5% Sources told this site that one of Europe’s largest private equity firms is considering buying Worldline.
A Worldline spokesperson told PYMNTS the company does not comment on market rumors.
The news comes a month after Worldline’s shares were announced reached a record level following the company’s announcement that it was cutting its sales forecast.
Worldline expects organic revenue growth of 6-7%, down from a previous forecast of 8-10%, leading to a 57% drop in its stock price and a $3.9 billion loss in market value.
“During the third quarter of 2023, some of our main geographies, in particular the German market, experienced a macroeconomic slowdown,” Worldline said.
“Indeed, consumers have started to allocate a greater share of their spending to non-discretionary verticals rather than discretionary verticals, which has had an impact on our growth and profitability.”
As PYMNTS wrote, consumers’ lack of confidence has led them to cut back on spending as they expect pressure on their household budgets to increase. persist until next year.
A recent PYMNTS study found that incomes aren’t keeping up with inflation, a finding made by a surprising 85% of households. Worldline’s price cut followed a trend seen elsewhere in the fintech sector this year. For example, in August, the Dutch payments company The Adyen stock price 44% drop.
In the meantime, Worldline d has been granted permission to expand its presence in Britain.
The company announcement On Tuesday (November 28) it had obtained a payment institution authorisation from the British government. Financial Conduct Authority (FCA).
“This license confirms Worldline’s ambitions to strengthen its presence in the UK and enhance its offering to local and international merchants operating across the country,” the company said in a press release. Worldline said it plans to consolidate all activities related to merchant customers and invest in its offering for local customers.
