Global Payments agrees to acquire Total System Services

Tuesday 28 May 2019 14:41 CET | News

Global Payments has agreed to acquire Total System Services in a deal valued at USD 21.5 billion – one of the payment industry`s biggest mergers of 2019.

Total System Services helps banks manage their credit and debit card portfolios for everything from card authorisations to detecting fraud and calculating rewards. Global Payments helps businesses handle credit and debit card payments.

Following the transaction, more than 3.5 million small to mid-size merchants and more than 1,300 financial institutions worldwide will be provided with payment technology and software, according to the two companies.

The transaction, which is slated to generate USD 300 million in cost savings, is expected to close in the fourth quarter of 2019. After closing, the combined entity is expected to generate about USD 8.6 billion annually in adjusted net revenue plus network fees, with USD 3.5 billion in earnings before interest, taxes, depreciation and amortisation, and USD 2.5 billion in free cash flow.

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Keywords: Global Payments, acquisition, Total System Services, payment industry, financial institution
Countries: World