Global Payments (GPN) to Acquire Accelerated Payment Technologies in $413M Deal
Tweet
Share
E-mailGet Alerts GPN Hot Sheet
Join SI Premium – FREE
Global Payments Inc. (NYSE: GPN), announced today an agreement to acquire Accelerated Payment Technologies (APT). APT is an innovative provider of fully-integrated payment solutions for small to medium sized merchants producing approximately $8 billion in annual card volume. APT markets its products and services primarily through a network of 700 value-added resellers (VARs) covering 30 different vertical markets.
Under the terms of the agreement and pending regulatory approvals and customary closing conditions, Global Payments will pay $413 million in cash to acquire APT from Great Hill Partners. The transaction is expected to close during Global Payments' second fiscal quarter 2013. Global Payments currently processes the majority of APT's transactions under its existing ISO processing relationship and, as a result, Global Payments' revenue will not materially change. For the partial year of fiscal 2013, the Company expects the transaction to be dilutive to fiscal 2013 earnings per share on a GAAP basis and about neutral on a cash earnings basis and accretive to cash earnings thereafter. Additionally, the Company expects the transaction to be significantly accretive to both North American and total company cash operating margins on an annualized basis. The Company will provide further details when the transaction closes.
Under the terms of the agreement and pending regulatory approvals and customary closing conditions, Global Payments will pay $413 million in cash to acquire APT from Great Hill Partners. The transaction is expected to close during Global Payments' second fiscal quarter 2013. Global Payments currently processes the majority of APT's transactions under its existing ISO processing relationship and, as a result, Global Payments' revenue will not materially change. For the partial year of fiscal 2013, the Company expects the transaction to be dilutive to fiscal 2013 earnings per share on a GAAP basis and about neutral on a cash earnings basis and accretive to cash earnings thereafter. Additionally, the Company expects the transaction to be significantly accretive to both North American and total company cash operating margins on an annualized basis. The Company will provide further details when the transaction closes.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: Travelers, JB Hunt fall; United Airlines rises
- Equifax (EFX) shares tumble as Q2, full-year guidance falls short
- Logansport Financial Corp. (LOGN) Reports Q1 EPS of $0.44
Create E-mail Alert Related Categories
Mergers and AcquisitionsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
