Wednesday, May 29, 2019
“Today marks a major milestone for TSYS, as we have entered into a merger of equals with Global Payments to create a premier global payments technology company at scale in the largest and most attractive markets worldwide,” a TSYS spokeswoman stated. “The combination of TSYS and Global Payments represents a strategic opportunity to unite two leaders in the payments industry with a shared vision and passion for providing innovative products and unsurpassed service.”
Noting their compatible values and corporate cultures, Global and TSYS CEOs reported that the merger was unanimously approved by each of their boards. Jeff Sloan, CEO at Global Payments, called the agreement a transformative partnership that “accelerates our technology-enabled, software-driven payments strategy and provides exposure into attractive and complementary businesses, while enhancing our financial strength and flexibility.”
M. Troy Woods, chairman, president and CEO of TSYS, concurred, stating the merger of equals will be a “payments powerhouse that is perfectly poised to lead the industry in delivering merchant, issuer and consumer payments technology, solutions and service to our customers.”
The agreement awards TSYS shareholders 0.8101 share of Global Payments for each share of TSYS common stock, currently valued at $119.86 per share, equating to approximately $21.5 billion in equity value for TSYS. Global Payments shareholders will have 52 percent ownership stake of the newly combined company, which is expected to generate approximately $8.6 billion in annual adjusted net revenue and an estimated $3.5 billion in adjusted earnings before interest, taxes, depreciation and amortization in 2019, according to financial analysts.
The newly consolidated company, which will be called Global Payments, will maintain dual headquarters in Atlanta and Columbus. Its global footprint will cover about 3.5 million small and midsize merchants and more than 1,300 financial institutions in over 100 countries. The new company’s combined talent will include more than 3,500 sales and service professionals with specialized knowledge of integrated POS systems, vertical markets and cross-border payments, the companies stated. Representatives expect to see a continuing emphasis on training and development to promote internal opportunities within the new company.
In their new roles, Troy Woods will serve as chairman of the board of directors and Jeff Sloan will serve as CEO and board member of the combined company. Newly appointed senior officers include Cameron Bready as president and chief operating officer and Paul Todd as chief financial officer. The executive team will be equally balanced between former TSYS and Global officers, representatives stated. The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approval.
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