ATLANTA & PRINCETON, N.J. -- In a merger that has been unanimously approved by each company’s board, Global Payments Inc., a leading worldwide provider of payment technology services, has entered into a definitive agreement to acquire Heartland Payment Systems Inc., one of the nation’s largest payment companies, for approximately $4.3 billion.
The parties expect the merger to close in Global Payments’ fiscal 2016 fourth quarter, subject to regulatory approval and customary closing conditions, as well as approval by Heartland’s shareholders.
In the United States, Heartland will continue to operate under its brand and under its business model.
The transaction 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.
Global Payments said it expects to combine Heartland’s expertise in technology solutions with its OpenEdge partner integration, network and marketing capabilities. It also said it plans to leverage Heartland’s product and sales capabilities globally through direct distribution. It will augment opportunities to cross-sell Heartland’s point-of-sale (POS), payroll, loyalty and gift solutions into Global Payments’ core U.S. and international markets by deeper penetration into key Heartland vertical markets, including restaurants and education.
The combined company will provide payments solutions to nearly 2.5 million merchants globally. On a combined basis, the businesses expect to generate in excess of $3 billion of adjusted net revenue and $1 billion of EBITDA annually.
“This partnership with Heartland marks a major milestone for our company, significantly enhancing our direct presence in our largest market and transforming Global Payments into the leading provider of integrated payments technology solutions in the world,” said Jeffrey S. Sloan, CEO of Global Payments. “The combination of strong businesses and cultures in high growth markets will generate exceptional opportunities for our employees, customers, partners and shareholders worldwide.”
Robert O. Carr, chairman and CEO of Heartland., said, “The combination of Global Payments and Heartland will be transformative for the worldwide payments industry. Under Jeff’s leadership, I believe the combination of our companies will become the most valuable payments company on the planet. Heartland is excited to team with a truly international company."
Global Payments expects to realize at least $50 million in synergies in fiscal 2017 and approximately $125 million of annual run-rate synergies thereafter.
Atlanta-based Global Payments is a leading worldwide provider of payment technology services and offers a broad range of products and services that allow customers to accept all payment types across a variety of distribution channels in many markets.
Princeton, N.J.-based Heartland, one of the largest payment processors in the United States, delivers credit, debit and prepaid card processing and security technology through Heartland Secure and its comprehensive Heartland breach warranty. It also offers POS, mobile commerce, e-commerce, marketing solutions, payroll solutions and related business solutions and services to more than 300,000 business and educational locations nationwide.
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