Three things you need to know in the financial markets this morning from investment writer, Tony Cross
JD Sports has snapped up Footasylum, with a recommended cash offer by both sets of directors having been tabled this morning. An offer of 82.5p per share in cash has been laid out, representing a 184% increase to the closing price the day before JD Sports started planning the acquisition. Synergies are believed to be available to the enlarged company, justifying the healthy premium on the offer. The reaction in JD’s share price at the open will however be telling as to whether the market agrees.
Worldpay is to merge with global financial services technology provider FIS, according to a release this morning, although FIS will end up the majority partner in the deal. Worldpay shareholders will receive a combination of cash and equity, and end up owning 47% of the combined entity. The two businesses see their operations as being complementary and as with the JD Sports deal above, the market’s assessment of this verdict will be telling.
Another contract win for Serco which they are keen to promote, with an AU$115 award for the seven year running of a prison in South Australia. The term can be extended for up to five years and is the sort of news that should help the company continue its share price recovery.