The transaction would help Global Payments to expand its presence in new and existing geographies, and consolidate its business-to-business (B2B) payments software and payment solutions offering
US-based payment technology company Global Payments has signed an agreement to acquire EVO Payments for an enterprise value of $4bn, including debt.
EVO Payments is a financial technology company engaged in providing payment technology and services to merchants, issuers and consumers.
Under the terms of the acquisition agreement, Global Payments will acquire the outstanding equity of EVO at a price of $34 per share, in cash.
The transaction has been unanimously approved by the board of directors of both companies.
Global Payments intends to fund the acquisition using available cash, a committed bank facility, and a $1.5bn investment from Silver Lake, in the form of a convertible note.
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.”
Global Payments said that the transaction will significantly increase the size of its target addressable markets, and further strengthen its position as an integrated payments provider.
It enables the company to expand into Poland, Germany, Chile, and Greece, along with enhancing its scale in US, Canada, Mexico, Spain, Ireland and the UK.
The acquisition will add advanced accounts receivable automation software capabilities, which would complement Global Payments’ existing B2B and accounts payable offerings.
In addition, it will also bring a range of crucial technology partners and unique integrations, including with the most widely used ERP software providers.
BofA Merrill Lynch and J.P. Morgan Securities served as financial advisors, and provided committed financing to Global Payments, on this transaction.
Goldman, Sachs & Co., Barclays, Evercore and Greenhill & Co, Inc. also served as financial advisors, while Wachtell, Lipton, Rosen & Katz as legal advisor to Global Payments.
Citi served as a financial advisor, and King & Spalding as a legal advisor to EVO.
EVO chief executive officer Jim Kelly said: “Joining EVO and Global Payments will unite highly complementary portfolios of technology-enabled products and partnerships to create an even stronger organization serving a broader customer base.
“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.”
In a separate development, Rêv Worldwide, in partnership with funds advised by Searchlight Capital Partners, has agreed to acquire Netspend from Global Payments, in a deal worth $1bn.