- Global Payments (GPN) announced it is buying EVO Payments (EVOP) in a $4 billion deal. These are the details.
Payment technology company Global Payments (GPN) and EVO Payments (EVOP) – a global provider of payment technology integrations and acquiring solutions – announced that Global Payments will acquire EVO in an all-cash transaction for $34 per share.
The deal will significantly increase Global Payments’ target addressable markets, further enhance its leadership in integrated payments worldwide, expand its presence in new and existing faster growing geographies, and augment its B2B software and payment solutions with the addition of accounts receivable software with broad third-party acceptance.
The deal will expand Global Payments’ geographic footprint into attractive new geographies such as Poland, Germany, Chile, and upon closing, Greece, as well as enhance its scale in existing markets, including the U.S., Canada, Mexico, Spain, Ireland, and the United Kingdom.
This deal will also add leading accounts receivable automation software capabilities that complement Global Payments’ existing B2B and accounts payable offerings. And EVO will bring an array of key technology partners and proprietary integrations, including with the most widely used ERP software providers.
Deal Details
The deal has been unanimously approved by each company’s Board of Directors. And pursuant to the terms of the merger agreement, Global Payments will acquire the outstanding equity of EVO for $34 per share in cash ($4 billion of enterprise value for EVO). And the purchase price represents a premium of approximately 24% and 40% to EVO’s last closing price and to its 60-day average price, respectively, as of July 29, 2022.
Global Payments expects to finance the acquisition with cash on hand and a committed bank facility. And Silver Lake will make a strategic investment of $1.5 billion in Global Payments in the form of a convertible note. In connection with the investment by Silver Lake, and subject to market conditions and other factors, Global Payments expects to enter into a call spread or other derivative transaction designed to raise the effective conversion premium of the convertible note.
The deal, which is subject to EVO stockholder approval, regulatory approvals, and other customary closing conditions, is expected to deliver $125 million of run-rate synergies and be accretive in the first year after close. And the deal is expected to close no later than the first quarter of 2023.
Certain investment funds affiliated with Madison Dearborn Partners, LLC and other EVO stockholders entered into voting agreements pursuant to which they have agreed, among other things, to vote their shares of EVO stock in favor of the transaction, subject to certain conditions. And these stockholders currently represent approximately 22% of the voting power of EVO’s stock.
KEY QUOTES:
“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.”
— Cameron Bready, President and Chief Operating Officer, Global Payments
“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.”
— Jim Kelly, Chief Executive Officer, EVO
