US-based Global Payments is to acquire smaller rival EVO Payments for nearly $4 billion in an all-cash deal that will extend its reach in the B2B sector.
Global Payments is paying a significant premium for the acquisition, which will expand its geographic footprint and also add accounts receivable automation software capabilities that complement its existing B2B and accounts payable offerings.
“The acquisition of EVO is highly complementary to our technology-enabled strategy and provides meaningful opportunities to increase scale in our business globally,” says Cameron Bready, president and chief operating officer, Global Payments. “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.”
The deal coincides with the offfloading of Global Payments’ Netspend consumer payments business to Rev Worldwide for $1 billion.
The transaction, which is expected to close no later than the first quarter of 2023, is expected to deliver $125 million of run-rate synergies.