Struggling French payment firm Worldline plans to raise €500 million in fresh equity to support a turnaround program aimed at restoring cash flow generation.
Driven by a new leadership team, the overhaul will involve the convergence of final platforms, decommissioning five platforms, integrating and automating operations, simplifying the organization, and renewing focus on commercial performance. The company aims to achieve free cash flow (FCF) generation by 2027 and targets €300 million to €350 million FCF by 2030.
The planned capital increase of €500 million will be supported by Worldline’s strategic investors: Bpifrance, Crédit Agricole SA, and BNP Paribas. Notably absent is the Swiss market operator SIX, which has downgraded its 10.5% stake from a ‘strategic’ to a ‘financial investment,’ indicating a reluctance to continue financial support.
As part of its disengagement from Worldline, SIX will assume full control of the firm’s electronic data management business (formerly Cetrel Securities). This transition is part of Worldline’s strategy to refocus on core payment activities, following agreements to divest Mobility & e-Transactional Services in July and North American operations in October. The combined cash proceeds from these three divestments are expected to range between €350 million and €400 million.
To restore confidence in the business, Worldline has agreed to an external review of its merchants portfolio and compliance & risk framework, as well as a clarification of cash pooling arrangements. This move comes after multiple media allegations that the French payments processor covered up historic client fraud to protect revenue, which resulted in a 20% drop in its share price in June.
In the immediate future, investors can expect challenges. Worldline anticipates low single-digit revenue growth at the group level. The adjusted EBITDA for 2026, while benefiting from initial savings from the transformation plan, is expected to be slightly lower than the 2025 low point of the guidance range due to increased remediation costs and an unfavorable business mix. Free cash flow in 2026 is projected to be at the lower end of the guidance for 2025, impacted by transformation costs, increased debt costs, and higher taxes.