Global Payments agrees to acquire EVO for $4bn

October 2022 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

October 2022 Issue

Uniting two highly complementary portfolios, worldwide provider of payment technology and software solutions Global Payments Inc. is to acquire global provider of payment technology integrations and acquiring solutions EVO Payments, Inc. in a deal valued at $4bn.

Under the terms of the definitive agreement, Global Payments will acquire the outstanding equity of EVO for $34 per share in cash. Global Payments expects to finance the acquisition with cash on hand and a committed bank facility.

Upon completion, the transaction will significantly increase Global Payments’ target addressable markets, further enhance its leadership in integrated payments worldwide, expand its presence in new and existing faster growth geographies, and augment its B2B software and payment solutions with the addition of accounts receivable software with broad third-party acceptance.

Headquartered in Georgia with approximately 25,000 team members worldwide, Global Payments is a Fortune 500 company and a member of the S&P 500 with worldwide reach spanning over 170 countries throughout North America, Europe, Asia Pacific and Latin America.

The acquisition of EVO will expand Global Payments’ geographic footprint into attractive new geographies such as Poland, Germany, Chile, and upon closing, Greece, as well as enhance its scale in existing markets, including the US, Canada, Mexico, Spain, Ireland and the UK.

“The acquisition of EVO is highly complementary to our technology-enabled strategy and provides meaningful opportunities to increase scale in our business globally,” said Cameron Bready, president and chief operating officer at Global Payments. “Together with EVO, we are positioned to deliver an unparalleled suite of distinctive software and payment solutions to our combined 4.5 million merchant locations and more than 1500 financial institutions worldwide.”

EVO will also add leading accounts receivable automation software capabilities that complement Global Payments’ existing B2B and accounts payable offerings. Furthermore, EVO will bring an array of key technology partners and proprietary integrations, including with the most widely used enterprise resource planning (ERP) software providers.

Founded in 1989, EVO is headquartered in Atlanta, with over 2400 employees serving more than 550,000 merchants around the world.

“Joining EVO and Global Payments will unite highly complementary portfolios of technology-enabled products and partnerships to create an even stronger organisation serving a broader customer base,” said Jim Kelly, chief executive of EVO. “Over the last decade, the EVO team has worked diligently to advance our innovative solutions, strengthen the service we provide to our bank and technology-enabled partners, and grow our global footprint.”

The transaction has been unanimously approved by each company’s board of directors.

Serving as financial advisers to Global Payments and providing committed financing are BofA Merrill Lynch and J.P. Morgan Securities LLC. Goldman Sachs & Co., Barclays, Evercore and Greenhill & Co, Inc. have also provided financial advice to Global Payments. Wachtell, Lipton, Rosen & Katz is serving as legal adviser to Global Payments. Serving as EVO’s legal adviser is King & Spalding LLP, with Citi serving as financial adviser.

The transaction is expected to close no later than the first quarter of 2023.

Mr Kelly concluded: “This transaction is an achievement for our company, and we believe it delivers compelling value to our shareholders and accelerates our growth opportunities.”

Fraser Tennant