Payments processor Vantiv buys rival WorldPay in $10B deal

Payments processor Vantiv has agreed to buy British rival WorldPay in an 8 billion pound ($10.4 billion) deal that will create a giant in the sector.

Vantiv, based in Cincinnati, Ohio, will pay 3.97 pounds a share in cash, stock and dividends for Worldpay, 24 percent more than the closing price on July 3, when news of the talks became public.

The takeover will combine Vantiv's U.S.-focused business with WorldPay's operations around the world. The combined group will process about $1.5 trillion of payments annually through over 300 payment methods in 146 countries.

The company will be called Worldpay and will be led by Vantiv Chief Executive Charles Drucker, who will become executive chairman and co-CEO of the new company. WorldPay boss Philip Jansen will be the other co-CEO.