FinTech: Payments Software Provider Global Payments To Acquire EVO Payments For $4B
The acquisition is an all-cash transaction @ $34 per share.
Payments software firm Global Payments (NYSE: GPN) has agreed to acquire payment technology and acquiring solutions firm EVO Payments (NASDAQ: EVOP) for $4 billion in an all-cash transaction valued at $34 per share. The acquisition will allow Global Payments to expand into new territories such as Poland, Germany, Chile, and Greece, as well as scale-up in existing markets, including the United States, Canada, Mexico, Spain, Ireland and the United Kingdom. (Businesswire)
Global is funding the deal with cash on hand and a committed bank facility. Silver Lake will make a strategic investment of $1.5 billion in Global Payments in the form of a convertible note.
Global Payments-EVO Payments
“The acquisition of EVO is highly complementary to our technology-enabled strategy and provides meaningful opportunities to increase scale in our business globally,” said Cameron Bready, President and Chief Operating Officer, in a statement. “Together with EVO, we are positioned to deliver an unparalleled suite of distinctive software and payment solutions to our combined 4.5 million merchant locations and more than 1,500 financial institutions worldwide.”
“Joining EVO and Global Payments will unite highly complementary portfolios of technology-enabled products and partnerships to create an even stronger organization serving a broader customer base,” added Jim Kelly, Chief Executive Officer, EVO. “Over the last decade, the EVO team has worked diligently to advance our innovative solutions, strengthen the service we provide to our bank and technology-enabled partners, and grow our global footprint. This transaction is an achievement for our company, and we believe it delivers compelling value to our shareholders and accelerates our growth opportunities.”
The transaction is expected to deliver $125 million of run-rate synergies, be accretive in the first year after close, and close no later than the first quarter of 2023.
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