The transaction is expected to close by the end of the calendar year. Global Payments and Total Systems Services, US payment services, concluded a merger agreement. With 100% focus on payments, we bring unmatched reach and extensive scale to help you grow your business with confidence. Bready said the two companies have areas where there is "significant overlap," creating opportunities to cut costs with little risk. Fiserv CEO Jeffery Yabuki, when talking about the new company's priorities, said: I mean, a lot of banks, especially in the community spaces, are worried about companies like Square. There's a lot of modernization going on. Image source: Global Payments/Total System Services May 28 investor presentation. CNBC'nin haberine göre birleşme kararı bu sabah kamuoyuna duyurulacak. CNBC - Global Payments ve Total System Services birleşiyor Dünyanın önde gelen ödeme teknolojisi şirketleri Global Payments veTotal System Services birleşme kararı aldılar. So it's very much an ecosystem. “At a time when our peers are fully levered, we will have plenty of firepower to continue to expand the business,” he said, citing specialized payments software and new geographies outside of the U.S. as growth targets. Under the deal terms, Total System holders will get 0.8101 Global Payments share for each common share they own. It also provides reloadable prepaid debit cards and payroll cards , and demand deposit accounts to the underbanked . Total System Services, a global payments provider that offers solutions across the issuing, merchant and consumer segments, will combine with Global Payments in a merger of equals. Working directly with merchants, both firms also provide supporting services, analytics, and payment-related services for financial firms. “If you think about the payments world, really Global Payments and TSYS were the last two large, independent payment players. For Total System Services (TSYS) and Global Payments, it’s official. The deal values TSYS at … The all-stock deal values Total System Services, or TSYS, at $119.86 a share, 20% more than its $99.62 closing price on May 23, before Bloomberg first reported deal discussions with Global Payments. Under terms of the arrangement, Total System Services shareholders will receive 0.8101 shares of Global Payments for every share. More important than even the mammoth sizes of these mergers and acquisitions is why they're all happening now. Shares of Columbus, Georgia-based Total System Services, commonly known as … TSYS adds complementary issuing solutions to Global Payments acquiring services. Updates with chairman’s comment in sixth paragraph. Before it's here, it's on the Bloomberg Terminal. Most of these opportunities will come from leveraging TSYS's relationships with banks, especially those in foreign markets, to create joint ventures or use as referral partners to capture additional merchant-acquiring business. Global Payments will buy Total System Services in an all-stock deal valued at $21.5 billion, the third major acquisition in the payment technology sector this year. . The deal values TSYS at approximately $21.5 billion, representing about a 20% premium to the company's value before the merger was made public. As an economic crimes detective, Matthew focuses on helping others avoid becoming victims of fraud and scams. 28 Mayıs 2019 08:19 Haberler. Cumulative Growth of a $10,000 Investment in Stock Advisor, Global Payments Acquires Total System Services: Everything Investors Need to Know @themotleyfool #stocks $GPN $TSS $FIS $FISV $SQ, Why Global Payments Stock Fell 11.2% Last Month, Total System Services Inc (TSS) Q3 2020 Earnings Call Transcript, Total System Services Inc (TSS) Q2 2020 Earnings Call Transcript, Global Payments (GPN) Q1 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. It is planned to close the deal in the fourth quarter of 2019. Have a confidential tip for our reporters? The company will maintain dual headquarters. Total System CEO Troy Woods will become chairman of the combined company, 52% of which will be owned by Global Payments shareholders, while Total System investors will own 48%. The merger is expected to create a more holistic company that handles both sides -- the merchant's and the bank's -- of every card payment transaction. Atlanta-based Global Payments, on the other hand, is the country’s fifth-biggest merchant acquirer, helping businesses handle credit- and debit-card payments. However, Global Payments shareholders would own 52% of the new entity, which will retain the Global Payments … Upon completion of the merger, Global Payments shareholders will own about 52% of the newly combined company and TSYS shareholders the remaining 48%. Global Payments primarily facilitates payment processing for merchants, while Total System Services, commonly referred to as TSYS, chiefly handles payment processing for card-issuing financial institutions. All of these deals featured players in the payment processing arena, both on the merchant and financial institution side. In the case of Global Payments, Sloan sees the company as a coconspirator in bringing technological disruption to the payments industry, with the TSYS deal being a part of the company's attack, not a defensive reaction to change. Total System Services helps banks manage their credit and debit card portfolios for everything fro m card authorisations to detecting fraud and calculating rewards. In the latest blockbuster fintech deal to be reached this year, Global Payments (NYSE:GPN) and Total System Services (NYSE:TSS) have reached an agreement to merge, creating a "technology-enabled payments company with extensive scale and unmatched global reach.". Global Payments has successfully pursued a strategy of embedding its payment solutions into software vertical stacks for niche industries via acquisitions, partnerships, and internal development. For the time being, at least, both companies' headquarters, about 100 miles apart in Georgia, will remain in operation. Wachtell, Lipton, Rosen & Katz is providing legal advice for Global Payments, while King & Spalding is helping Total System. This combination creates more efficient payments for businesses and financial institutions by enabling faster transactions, higher authorization rates, quicker settlements and better fraud detection. This essentially makes Global Payments a payments ecosystem, not just a provider of a commoditized payment processing service. The company will maintain dual headquarters. With the deal being immediately accretive to earnings and seemingly keeping Global Payments' strategy intact, the combined company looks well-positioned in the constantly changing payments industry. And what do you do where Square has a growing -- a rapidly growing point-of-sale lending business? Global Payments fell 0.9% to $152.10. Those are small-ticket items each individually. Global Payments provides payment processing services to merchants, allowing them to accept credit and debit cards, along with other payment types (this role is known as a merchant acquirer). Dünyanın önde gelen ödeme teknolojisi şirketleri Global Payments ve Total System Services birleşme kararı aldılar. Fiserv Inc. announced a $22 billion takeover of First Data Corp. in January, and rival Fidelity National Information Services Inc. agreed to buy Worldpay Inc. just two months later for $34 billion. Total System Services, Inc. (commonly referred to as TSYS), headquartered in Columbus, Georgia, provides payment processing services, merchant services and related payment services. Management projects that the agreement will result in annualized cost savings of $300 million and create $100 million in annual revenue synergies. The 12-member board of directors will be evenly split between Global Payments and TSYS members, with Global Payments CEO Jeff Sloan keeping his role at the new company and TSYS CEO Troy Woods becoming chairman of the board. Global Payments ve Total System Services birleşme kararı aldılar. Last week, a deal was floated around by Global Payments that it would be acquiring Total System Services for around $20B. The rationale given for the merger by both management teams was the significant revenue and cost synergies the deal would help the new company realize. Global Payments Inc. GPN, +2.64% and Total System Services Inc. TSS, announced an all-stock merger of equals with an equity value of about $21.5 billion on Tuesday. Noticeably, the technological disruption the industry is seeing was called out in all three conference calls following the deals, with Square (NYSE:SQ) being specifically called out twice. Global Payments helps businesses handle credit and debit card payments. Both companies are credit and bank processors for merchants. Global Payments is based in Atlanta and TSYS is based in Columbus, Georgia. He could be right. Global Payments has inked a deal to acquire Total System Services (TSYS) in a $21.5 billion deal. If it is finalized, it will be the third-largest fintech deal of all time, according to S&P Global Market Intelligence. Global Payments Inc. agreed to buy Total System Services Inc. in a deal valued at $21.5 billion, the payment industry’s third mega-merger of the year. Global Payments ve Total System Services birleşiyor Dünyanın önde gelen ödeme teknolojisi şirketleri Global Payments ve Total System Services birleşme kararı aldılar. How Carrefour Brasil Confronted Coronavirus Challenges. The crazy thing is that three of the largest four such deals have taken place in the first half of 2019. Global Payments Inc. is nearing an all-stock deal to buy Total System Services Inc. for about $20 billion, according to a person familiar with the … Our clients need to continue to look to compete in this very aggressive market. CNBC'nin haberine göre birleşme kararı bu sabah kamuoyuna duyurulacak. Dünyanın önde gelen ödeme teknolojisi şirketleri Global Payments ve Total System Services birleşme kararı aldılar. View Now. Market data powered by FactSet and Web Financial Group. Dünyanın önde gelen ödeme teknolojisi şirketleri Global Payments ve Total System Services birleşme kararı aldılar. He is most familiar with the fintech and payments industry and devotes much of his writing to covering these two sectors. Global Payments is buying Total System Services in an all-stock deal valued at $21.5 billion, the third major acquisition in the payment processing sector this year. Visit Payments in Focus, Global Payments' digital publication with expertise and innovation. Under terms of the arrangement, Total System Services shareholders will receive 0.8101 shares of Global Payments for every share. Payment technology companies Total System Services Inc. and Global Payments Inc. agreed to merge in an all-stock transaction valued at about $21.5 billion. We just felt like it made a lot of sense to control our own destiny and pick our dance partner.”. Total System shares rose 6.9% to $121.24 at 10:31 a.m. in New York. Global Payments Inc. GPN, a provider of payments technology and software solutions to customers globally, has completed its earlier announced acquisition of Total System Services, Inc. TSYS shareholders will own 48% of the combined company. Total System Services is what’s known as an issuer processor, meaning it helps banks manage their credit and debit card portfolios for everything from card authorizations to detecting fraud and calculating rewards. When Square was mentioned by Global Payments CEO Jeff Sloan, the tone was subtly different: So I don't know who came first in doing this, whether it was us or someone like Square, but we've been selling payroll to merchants for a very long time. Sloan, who will lead the combined company, said Global Payments and Total System had talked about combining a number of times over the past decade. In January, Fiserv (NASDAQ:FISV) and First Data Corp. announced a $20 billion-plus acquisition, and then in March, Fidelity National Information Services (NYSE:FIS) agreed to acquire Worldpay for a whopping $35 billion. ... ©2020 Total System Services LLC. Global Payments is based in Atlanta and TSYS is based in Columbus, Georgia. Norway Raises Concern Over Vaccine Jabs for the Elderly, What to Know About Vaccine-Related Deaths, Allergies, Norway Moves to Calm Vaccine Anxiety After Elderly Deaths, Vaccine Disparities Raise Alarm as Covid Variants Multiply, U.S. Equity Futures Fluctuate, Dollar Edges Higher: Markets Wrap. Shares in Total System Services Inc. rose about 4% in premarket trading and shares of Global Payments Inc. fell by about the same. CEO Troy Woods will continue as the chairman of the board of the newly combined entity. Traditional payment processors like Global Payments are consolidating as they compete increasingly with upstarts like PayPal and Square, which is led by Twitter co-founder Jack Dorsey. The transaction will create a powerhouse that provides payment technology and software to more than 3.5 million small to midsize merchants and more than 1,300 financial institutions worldwide, the two companies said in a statement Tuesday. Global Payments shareholders will hold 52% of the combined company, and CEO Jeff Sloan will still hold the position after the merger is finalized. Together, we bring complementary payment solutions and services to better serve our customers and partners. Total System Services stock rises after Bloomberg reports of merger talks with Global Payments Shares of Total System Services Inc. are up more than 6% in premarket trading Friday after Bloomberg reported that the company has engaged in talks with Global Payments … Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Global Payments near deal to acquire Total System Services: Sources Power Lunch CNBC reported last week that the Global Payments was nearing a … You've got disruptors coming in. Today, you can walk into a small merchant ... and using your phone, can underwrite that merchant, you can offer payroll services today. Returns as of 01/14/2021. Shares in Total System Services Inc. rose about 4% in premarket trading and shares of Global Payments Inc. fell by about the same. Global Payments is buying Total System Services in an all-stock deal valued at $21.5 billion, the third major acquisition in the payment processing sector this … Payment processing until recently was a predictable, stodgy business. In return, they receive a percentage of the transaction value (usually about 1-2% for credit cards). Jeffrey Sloan, the chief executive of Global Payments… Fidelity National CEO Gary Norcross talked about the disruption the payments industry was seeing: I mean, there's a lot of innovation going on. The Columbus, Georgia-based firm is the country’s largest provider of such services, managing about 40% of Visa Inc. and Mastercard Inc. domestic accounts last year. And that's going to take money out of the revenue line of the banks. Habere göre 40 milyar dolar büyüklüğe ulaşacak yeni Şirket'i Global Payments'ın CEO'su Jeffrey Sloan yönetecek. The $100 million in annual revenue synergies should also be recognized within three years and will largely be created by cross-selling opportunities within each legacy company's customer base. The combined entity is forecast to generate about $8.6 billion annually in adjusted net revenue plus network fees, with $3.5 billion in earnings before interest, taxes, depreciation and amortization and $2.5 billion in free cash flow. Global Payments Acquires Total System Services: Everything Investors Need to Know A third industry-shaping megamerger is announced in the payments … In both prior instances, the companies involved talked about the technological change the industry was seeing as an impetus for their deals. Bready added, however, that there was also the matter of cross-selling each company's strengths into the other's merchant base: But I also don't want to lose sight to maybe the smaller, more tactical opportunities that exist to cross-sell products and solutions across our existing book of SMB [small and medium businesses] customers ... Our ability to sell complementary products that we each have strength in across those base of business customers today is very exciting. The price tag places this as the third-largest fintech agreement ever. Global Payments and Total System Services described the deal as a "merger of equals." “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,” Global Payments Chief Executive Officer Jeff Sloan said in an interview. Both Global Payments and TSYS have built industry-leading solutions in payments over our combined 89 years in business. Image source: Getty Images. The all-stock deal values Total System Services, or TSYS, at $119.86 a share, 20% more than its $99.62 closing price on May 23, before Bloomberg first reported deal discussions with Global Payments. Negotiations between the companies became more serious a couple of months ago as rivals announced their own deals in a clamor for a bigger share of the nearly $100 billion merchants spend on swipe fees each year. Bloomberg , citing to people with knowledge … “It’s the right deal at the right time,” Woods said in a telephone interview. The combined company will have a worldwide customer base of 3.5 million merchants, 1,300 financial institutions, and 600 million cardholders, and will facilitate approximately $50 billion of transactions per year. Transaction is the industry’s third mega-merger of the year, Agreement marks 20% premium from before news of talks broke, Global Payments CEO Wants to Expand in Europe and Asia-Pacific. Stock Advisor launched in February of 2002. Several times during the company's conference call announcing the deal, management reinforced that the all-stock merger would allow the balance sheet to remain solid enough for the company to continue its software acquisition strategy. Global Payments declined to comment, while Total System Services did not respond to a request for comment. He expects the company to recognize its annualized cost savings goal of $300 million in three years. Global Payments and Total System Services said they expect to extract about $300 million in annual cost savings, and generate $8.6 billion in annual adjusted net revenue and $3.5 billion in adjusted EBITDA. “We are going to be in a position to continue to invest in growth and not be over-burdened with debt such that we can’t innovate and invest,” Cameron Bready, Global Payments’ chief financial officer, said in an interview. The flurry of deal activity among payment processors has created behemoths that could fashion networks that serve and connect financial institutions and merchants, similar to Visa’s and Mastercard’s offerings. You can also offer lending. The transaction, which is expected to generate $300 million in cost savings, is slated to be completed in the fourth quarter. Image source: Total System Services Inc. When Brazil's government deployed financial assistance during the pandemic, thousands of people with no banking access were left without help. The combined company will be worth roughly $40 billion. Global Payments CFO Cameron Bready stated the cost savings will be achieved "primarily by aligning merchant business operations and go-to-market strategies, streamlining technology infrastructure, eliminating duplicative corporate and operational support structures, and realizing scale efficiencies." 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