US-based worldwide provider of payment technology and software solutions, Global Payments, has announced a definitive agreement to acquire EVO Payments, a fintech global provider of payment technology integrations and acquiring solutions.
The transaction will be all-cash, settled for USD 34 per share, indicating a total enterprise value of around USD 4 billion for EVO. The purchase price represents a premium of around 24% to EVO’s last closing price.
The transaction aims to significantly increase Global Payments’ target markets, while strengthening its position in the integrated payments sector worldwide. Moreover, Global Payments looks to expand its presence across new geographies and boost its B2B software and payment solutions by adding accounts receivable software with broad third-party acceptance.
By acquiring EVO, Global Payments can leverage new opportunities and increase scalability in the global businesses. Together, the two companies can deliver a wide array of different software and payment solutions to meet the needs of over 4.5 million merchant locations and more than 1,500 financial institutions worldwide.
Moreover, Global Payments will expand geographically into new markets from Europe and LATAM, including Germany Poland, Greece, and Chile, while enhancing its presence in already existing markets like the US, Canada, the UK, Ireland, and Spain.
Global Payments is set to finance the acquisition with cash on hand, as well as a committed bank facility, with a strategic investment of USD 1.5 billion from Silver Lake, in the form of a convertible note. The company is also expected to enter into a call spread or a different derivative transaction designed to raise the effective conversion premium of the convertible note.
Ultimately, the transaction is subject to EVO stockholder approval as well as regulatory approvals and customary closing conditions, which is expected to provide USDD 125 million in run-rate synergies. The transaction should be completed before the end of Q1 2023.
Global Payments focuses on delivering innovative payment and software services to global customers. These solutions allow customers to increase the efficiency of their businesses across a variety of channels. Headquartered in the US and counting for over 25,000 employees, Global Payments is a Fortune 500 company and a member of the S&P 500.
At the same time, EVO Payments was founded in 1989 in the US and is an important local player in the payment technology and service providing industries. It offers a variety of innovative, secure, and reliable payment solutions to merchants of all sizes, including SMEs and multinationals.
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