As per the terms of the deal, Global Payments will offer $34 per share in cash to EVO Payments’ shareholders
Global Payments has agreed to acquire rival publicly-listed US-based payment technology company EVO Payments in an all-cash deal worth $4bn.
As per the terms of the deal, Global Payments, which is listed on the New York Stock Exchange (NYSE), will offer $34 per share to EVO Payments’ shareholders.
EVO Payments, which is a provider of payment technology integrations and acquiring solutions, offers a range of payment solutions to merchants.
Based in Atlanta, the fintech company has 2,400 employees, who cater to over 550,000 merchants around the world.
EVO Payments CEO Jim Kelly said: “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.”
Global Payments provides its payment technology and software solutions to customers globally. It offers a variety of solutions to help customers in operating their businesses more efficiently across a range of channels.
The acquisition will considerably boost its target addressable markets, further improve its position in integrated payments worldwide, and grow its footprint in new as well as existing faster growth geographies.
It will also augment Global Payments’ business-to-business (B2B) software and payment solutions by adding accounts receivable software with broad third-party acceptance.
Global Payments president and chief operating officer Cameron Bready said: “The acquisition of EVO is highly complementary to our technology-enabled strategy and provides meaningful opportunities to increase scale in our business globally.
“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.”
The deal has been approved unanimously by the board of directors of both firms.
Subject to EVO Payments’ shareholders’ approval, regulatory approvals, and other conditions, the deal is anticipated to close no later than Q1 2023.
The deal is backed by some investment funds affiliated with Madison Dearborn Partners and other EVO Payments’ stockholders, who presently represent nearly 22% of the voting power of the company’s stock.