Today Global Payments Inc. (GPN) and Total System Services Inc. (TSS) announced an all-stock merger of equals with an equity value of about $21.5 billion. Global Payments is fifth-largest merchant acquirer in the U.S., helping businesses handle their credit and debit card payments. Total System Services is the third-biggest payment processor in the credit card issuers’ market.
The consolidation between these two companies is the third-mega merger in 2019. In January, financial technology provider Fiserv bought payment processor First Data for $22 billion and financial technology group Fidelity National Services bought payment processor Worldpay for $35 billion in March.
Global Payments CFO Cameron Bready says that the merger “better positions both of us to be able to compete with the ever-changing landscape around payments. We gain exposure to over 900 premiere financial institutions globally, with whom we can now partner… in addition, Tsys today has good exposure in digital P2P payments, as well as B2B payments through their NetSpend business.”
Jeffrey Sloan, the chief executive of Global Payments, will run the amalgamated company worth about $40 billion. Also, shareholders of Total System Services will receive 48% of the merged firm. The consolidation comes as established financial companies seek to compete with new technology players, such as Square and PayPal. The combined company will offer enterprise banking, payments, capital markets, and global eCommerce services to financial institutions and businesses around the world.
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Sintel Systems services clients in globally in over a dozen languages across retail, restaurant and service industries, including frozen yogurt shops, pizzerias, sushi restaurants, cafés and retail stores.
