• Acquisition gives Vantiv more exposure to e-commerce: analyst
  • JPMorgan says it won’t make offer after being asked to bid

Traditional retailers aren’t the only businesses feeling the squeeze from Amazon.com Inc. Payment processors are too.

Vantiv, the largest U.S. merchant acquirer, agreed Wednesday to buy London’s Worldpay Group Plc for 7.7 billion pounds ($9.9 billion) to gain greater exposure to e-commerce retailers and small businesses. As much as 50 percent of Vantiv’s revenue comes from large chains, which have struggled to compete with online retailers, according to Moshe Katri, an analyst at Wedbush Securities Inc.

“The problem with that exposure is that you’re seeing some of the large national merchants and retailers that are predominantly brick-and-mortar businesses, these guys are losing share to the ‘Amazon effect,”’ Katri said.

Vantiv’s bid for Worldpay comes two months after First Data Corp. agreed to buy CardConnect Corp. for $750 million. Global Payments Inc. said in December 2015 it was buying Heartland Payment Systems Inc. for $4.3 billion, combining two of the largest U.S. merchant acquirers. The following month, Total System Services Inc. announced it would pay $2.35 billion for TransFirst.

JPMorgan Out

Vantiv processed 21.2 billion transactions in 2016, according to the Nilson Report, an industry newsletter. The company’s cash-and-share offer for Worldpay equates to 3.85 pounds a share, including a 5 pence per share dividend, the companies said in a joint statement. JPMorgan Chase & Co. won’t make a bid after being invited to consider an offer, the New York-based bank said in a separate statement Wednesday.

Worldpay’s shares, which rose 28 percent Tuesday after the company said it had gotten preliminary takeover approaches from Vantiv and JPMorgan,…