Global Payments (GPN, Financial), a payment processing company, has announced its acquisition of Worldpay, a Cincinnati-based competitor, for over $22 billion. This strategic move aims to enhance Global Payments' global presence, enabling it to process approximately 94 billion transactions worth $3.7 trillion across more than 175 countries.
The payment processing industry, featuring prominent players like Visa and Mastercard, facilitates financial transactions between consumers, businesses, and banks. The sector's growth is driven by increasing demand for electronic payments and banking services.
As part of a three-way deal involving private equity firm GTCR and fintech company Fidelity National Information Services (FIS), Global Payments will pay $22.7 billion in cash and stock. Additionally, Global Payments will divest its card issuing solutions division to FIS. Upon completion, GTCR will hold a 15% stake in Global Payments.
Global Payments has projected its first-quarter earnings per share to be $2.69, aligning with Wall Street expectations.
