Managements Discussion and Analysis of Financial Condition and Results of Operations of Worldpay, Inc.
for the year ended December 31, 2018
This managements discussion and analysis provides a review of the results of operations, financial condition and liquidity and
capital resources of Worldpay, Inc., formerly Vantiv, Inc. (Worldpay, we, us, our or the company refer to Worldpay, Inc. and its consolidated subsidiaries) and outlines the factors that
have affected recent results, as well as those factors that may affect future results. Our actual results in the future may differ materially from those anticipated in these forward looking statements as a result of many factors, including those set
forth under Risk Factors, Forward Looking Statements and elsewhere in Worldpays Annual Report on Form 10-K for the year ended December 31, 2018. The following discussion and analysis should be read in conjunction with
Worldpays Consolidated Financial Statements and related notes included in Exhibit 99.1 to this Current Report on Form 8-K.
Worldpay, Inc. is a leading payments technology company. We process over 40 billion
transactions annually, supporting more than 300
payment types across 146 countries and 126 currencies. According to the Nilson Report, we are the largest merchant acquirer globally by number of transactions, and the largest PIN debit acquirer by number of transactions in the United States.
We are a payments innovator, differentiated by our global reach, innovative technology and tailored solutions. Our leading competitive
position and differentiated solutions have enabled us to achieve unique advantages in fast-growing and strategically-important segments of the payments market, including unrivaled capabilities in global eCommerce, a first-mover advantage in U.S.
Integrated Payments, and Enterprise payments and data security solutions in business-to-business (B2B) payments. See Exhibit 99.5 to this Current Report on Form 8-K for
a more detailed discussion of the business overview.
Share Repurchase Authorization
In October 2016, our board of directors authorized a program to repurchase up to an additional $250 million of our Class A common
stock. We currently have approximately $93 million of share repurchase authority remaining as of December 31, 2018 under this authorization. On February 20, 2019, our board of directors authorized a program to repurchase up to an
additional $500 million of our Class A common stock bringing our total share repurchase availability to $593 million.
On January 16, 2018, we completed the acquisition of Worldpay Group Limited, formerly Worldpay Group plc, a public
limited company (Legacy Worldpay) by acquiring 100% of the issued and outstanding shares. The acquisition creates a leading global integrated payment technology and international eCommerce payment provider and will enable us to take
advantage of strategic and innovative opportunities to provide differentiated and diversified solutions to address clients needs.
On May 25, 2017, we completed the acquisition of Paymetric Holdings, Inc. (Paymetric) by acquiring 100% of the issued and
outstanding shares. Paymetric automates business-to-business payment workflows within enterprise systems and tokenizes payments data within these systems in order to
enable secure storage of customer information and history.
Please see Note 3Business Combinations in the notes to our audited
consolidated financial statements included in Exhibit 99.1 to this Current Report on Form 8-K for more information about these acquisitions.
Segments, Revenue and Expenses
Technology Solutions provides merchant acquiring, payment processing and related services to a diverse set of merchants that primarily accept
payments through eCommerce and integrated payment solutions.
Merchant Solutions provides merchant acquiring, payment processing and related services to a diverse set of merchants that primarily accept
payments through an omni-channel solution including terminal based.
Issuer Solutions provides card issuer processing, payment network processing, fraud protection and card production to a diverse set of
financial institutions, including regional banks, community banks, credit unions and regional PIN networks.