Global Payments Inc. to Acquire EVO Payments for $4 Billion

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The recent acquisition of EVO Payments by Global Payments($NYSE:GPN) Inc will have a positive impact on the company’s overall financials. The deal is expected to be complementary and will increase the scale of the combined business. The two companies will serve a customer base of more than 4.5 million merchant locations. This acquisition will provide significant opportunities for Global Payments to increase its scale and reach globally. This will be a positive long-term development for Global Payments, and investors should expect to see positive impacts on the company’s market share and earnings in the future.

Price History

On Wednesday, shares of Global Payments Inc opened at $125.70 and closed at $124.20, after the company announced it would acquire EVO Payments International for $4 billion. The acquisition will give Global Payments a larger footprint in Europe and the Asia-Pacific region, and will make it the third largest payments processor in the world. EVO Payments is a leading provider of payment processing and merchant acquiring services, and the acquisition will strengthen Global Payments’ position as a global leader in payments.

VI Analysis

The Company operates through three segments: Merchant Services, Payment Processing and Software & Solutions. The Company’s technologies enable consumers, businesses, merchants and governments to make and receive payments. The Company’s Merchant Services segment provides payment solutions to merchants. The Company’s Payment Processing segment provides authorization, clearing and settlement services to issuers, acquirers, independent sales organizations , referring agents, third-party processors and software providers. The Company’s Software & Solutions segment provides software platforms that enable issuers and acquirers to develop and manage their payment card programs. For more details please visit Risk Rating.

Summary

This acquisition will significantly expand Global Payments’ product capabilities and global reach, positioning the company as a leading provider of integrated payments solutions. Global Payments expects to finance the cash portion of the acquisition with a combination of cash on hand and debt financing. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2019. Upon closing,EVO’s CEO and Chairman, James G. Kelly, will join Global Payments’ Board of Directors.