Atlanta-based Global Payments, a payment provider and software solutions company, has agreed to merge with Columbus, Ga.-based TSYS, another payments provider, in a $21.5 billion all-stock merger of equals.
The company says the merger will allow the combined businesses to provide payments and software solutions to 3.5 million small and medium-sized merchant locations and more than 1,300 financial institutions in more than 100 countries.
“The combination of Global Payments and TSYS establishes the leading pure play payments technology company with unparalleled vertical market and payment software capabilities and ecommerce and omnichannel solutions, operating at scale in fast growing markets globally,” Jeff Sloan, CEO of Global Payments, said in a statement. “This transformative partnership accelerates our technology-enabled, software-driven payments strategy and provides exposure into attractive and complementary businesses, while enhancing our financial strength and flexibility."
Under the terms of the merger agreement, TSYS shareholders will receive 0.8101 Global Payments shares for each share of TSYS common stock. Upon closing, Global Payments shareholders will own 52 percent of the combined company, and TSYS shareholders will own 48 percent on a fully diluted basis. Both companies' boards of directors have unanimously agreed on the merger.
“In this exciting merger of equals, our new company will truly 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,” M. Troy Woods, chairman, president and CEO of TSYS, said in a statement.
The purchase is expected to close in the fourth quarter of this year. The combined company will take the name Global Payments and split its headquarters between Atlanta and Columbus. The new executive team will equally be made up of leaders from Global Payments and TSYS. The board of directors of the combined company will consist of six Global Payments board members and six TSYS board members.
Troy Woods will become chairman of the board of directors and Jeff Sloan will serve as CEO of the combined company and a board member. Cameron Bready will become president and COO of the combined company and Paul Todd will become CFO.
