Global Payments is set to buy smaller rival EVO Payments for almost $4 billion in an all-cash deal that will enable it to expand its reach in the B2B industry. Having its headquarters in Atlanta, EVO now offers merchant acquiring and payments processing services to at least 550,000 merchants in more than 50 markets and 150 currencies.
Global Payments is paying a considerable premium for the acquisition, which will grow its geographic footprint and add accounts receivable automation software capabilities that mainly complement its existing B2B and accounts payable offerings.
The president and chief operating officer, Global Payments, Cameron Bready, stated:
“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.”
This deal coincides with the offloading of Global Payments’ Netspend consumer payments business to Rev Worldwide for a sum of $1 billion.
The transaction, is expected to close no later than the first quarter of 2023. In that context, it is expected to deliver $125 million of run-rate synergies.