Global Payments To Buy Heartland Payment Systems (updated)
Global Payments Inc., a publicly traded (NYSE) payments company announced an offer to acquire Heartland Payment Systems.
“The transaction significantly expands Global Payments’ U.S. direct small and medium sized enterprise distribution, merchant base and vertical reach. Heartland’s strengths in direct sales and technology led distribution are highly complementary to Global Payments’ expertise in 60 vertical markets with 2,000 technology partners. The combination will leverage Global Payments’ scalable, worldwide infrastructure, and drive substantial technological and operational synergies.
Global Payments expects to accelerate revenue growth by combining Heartland’s deep expertise in technology solutions with its OpenEdge partner integration, network and marketing capabilities to create a distinctive set of solutions and distribution. In addition, Global Payments plans to leverage Heartland’s product and sales capabilities globally through direct distribution in the 29 countries in which Global Payments currently does business. Opportunities to cross sell Heartland’s point of sale, payroll, loyalty and gift solutions into Global Payments’ core U.S. and international markets will be augmented by deeper penetration into key Heartland vertical markets including restaurant and education.” (italics added for this article).
Global Payments will acquire Heartland in a cash and stock transaction for $100.00 per share, representing a transaction
value of approximately $4.3 billion. Consideration for the transaction will consist of 0.6687 shares of Global Payments stock and $53.28 for each share of Heartland stock at closing, subject to the terms of the merger agreement. Existing Global
Payments’ shareholders will own approximately 84 percent of the combined entity.
Global Payments intends to fund the cash consideration with fully committed debt financing. The merger agreement has been unanimously approved by each company’s Board of Directors.
See the full Global Payments press release here.
Heartland stock price for the last 6 months – source, Barrons.com.
The following has been obtained from Heartland’s SEC filings, dated December 16, 2015. (http://www.sec.gov/Archives/edgar/data/1144354/000089882215000288/statementsandfaq.htm)
Holding Statement for Respective Merchants/Customers
We are pleased to announce that Global Payments has entered into a definitive agreement to acquire Heartland Payment Systems.
Our customers are our top priority and we remain committed to providing the same high level of service and support that you have come to expect. We continue to operate business as usual and you can expect to continue working with the same contacts you work with today. We do not anticipate immediate changes to your current processing relationship and there’s nothing you need to do at this time.
|Q:||What transaction has been announced?|
|A:||Global Payments will acquire Heartland in a cash-and-stock transaction for $100.00 per share, representing a transaction value of approximately $4.3 billion. Consideration for the transaction will consist of 0.6687 shares of Global Payments stock and $53.28 for each share of Heartland stock at closing, subject to the terms of the merger agreement. Existing Global Payments’ shareholders will own approximately 84 percent of the combined entity at closing.|
Q: Who is Global Payments?
|A:||Global Payments Inc. is a leading worldwide provider of payment technology services. Headquartered in Atlanta, Georgia with more than 4,500 employees worldwide, Global Payments is a Fortune 1000 Company with merchants and partners in 29 countries throughout the Americas, Europe and the Asia-Pacific region.|
Q: Who is Heartland?
|A:||Heartland Payment Systems is a Fortune 1000 company and one of the largest payment processors in the United States. It delivers point of sale, mobile commerce, ecommerce, marketing solutions, payroll solutions and related business solutions to more than 300,000 business and educational locations throughout the U.S.|
Q: What changes can I expect from this event?
|A:||We plan to combine the best of both companies. Until closing, we continue to operate business as usual and you can expect to continue working with the same contacts you work with today. We expect the combination of both Global Payments and Heartland will streamline and enhance the overall service experience of our respective customers.|
News of this event was first reported by Bloomberg News on December 10th 2015
Other Heartland SEC filings of interest can be found here.
More information about Heartland from it’s website.
“Heartland Payment Systems delivers credit/debit/prepaid card processing, payroll, check management and payments solutions, to more than 250,000 business locations nationwide.
A NYSE company trading under the symbol HPY – Heartland employs more than 1,000 relationship managers, account managers and sales leaders out of a team of nearly 2,700 employees in operations, sales, customer service, technology, marketing and administration.
From its first card transaction processed on July 15, 1997, to the more than 4 billion transactions it handles annually, Heartland has grown to be the 6th largest payments processor in the United States by transaction volume, 8th largest by transaction dollar value and 9th in the world.”
Read an article about Heartland from an interview with Robert O. Carr, it’s CEO, and The Point of Sale News in August 2015.
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