Global Payments and TSYS agree mega-merger
Global Payments and TSYS in mega-merger
Merchant acquirer Global Payments has agreed to buy issuer processor firm Total System Services (TSYS) in a $21.5 billion deal, Jane Connolly writes.
The two companies confirmed the deal today (May 28) in what will be the payment industry’s third “mega-merger” of 2019. The all-stock deal values TSYS at $119.86 per share, a rise of 20% since before news of the talks started to emerge.
Global Payments shareholders will own 52% of the combined company, while TSYS investors own 48%. TSYS CEO Troy Woods will become the chairman.
Jeff Sloan, Global Payments’ CEO, will lead the combined company. He says: “The pace of change in the industry driven by innovation in technology, coupled with the need to have additional scale, had made this deal a function of a matter of time.”
The combined entity will provide payment technology and software to more than 3.5 million small to medium-sized merchants and over 1,300 financial institutions worldwide.
It is expected that the deal, anticipated to close in the fourth quarter, will generate around $8.6 billion in adjusted net revenue annually plus network fees and make cost savings of $300 million.
The deal follows Fiserv’s $22 billion takeover of First Data and FIS’s acquisition of Worldpay for $34 billion earlier this year.
