French payments company Worldline (WLN.PA) is attracting early-stage takeover interest from private equity firms, including Bain Capital, as it faces a challenging period of falling share prices, profit warnings, and leadership changes, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that Bain Capital has begun evaluating a potential bid, exploring various strategies with advisers. The deliberations, which have been ongoing in recent weeks, remain in the early stages, with no certainty of a formal offer, the sources added.
Shares of Worldline, which had a market capitalisation of €1.88bn ($1.98bn) as of Friday, surged by 15% following reports of the potential interest. The company’s stock has plunged 92% since its 2021 peak, fuelled by investor disillusionment, three profit warnings within a year, and broader challenges in the payments industry.
Worldline has implemented significant cost-cutting measures, including the sale of its Mobility and e-Transactional Services division and an 8% workforce reduction, to address its financial struggles. However, a potential bid by Bain or any other party would face hurdles.
Key shareholders, including Bpifrance, which owns a 5% stake, and Credit Agricole, which holds 7% and maintains a strategic partnership with Worldline, may resist a sale at the company’s current depressed valuation, according to the sources.
A spokesperson for Bain declined to comment, while Worldline stated it does not address market speculation. Both Bpifrance and Credit Agricole also declined to comment.
Bain Capital already has experience in the payments sector, holding a 10% stake in Italy’s Nexi (NEXII.MI) and a board seat alongside Advent International. However, any bid for Worldline could require the PE firm to resolve potential conflicts with its Nexi stake, according to sources.
