Global Payments Inc. is nearing an all-stock deal to buy Total System Services Inc. for about $20 billion, according to Bloomberg, in what would be the third mega-merger in the payments industry this year.
The companies are preparing to announce a transaction as early as Tuesday. The companies had also discussed possible joint ventures and other ways to partner up, people with knowledge of the talks said earlier. No deal has been finalized and talks could fall apart, Bloomberg said.
Global Payments shares rose 4.6% to $154.85 at 1:05 p.m. in New York, valuing the company at about $24.3 billion. Total System Services jumped the most in nine years to $111.66 for a market valuation of $19.8 billion.
Market watchers have pegged Global Payments and Total System Services as potential takeover targets or merger partners in the wake of two jumbo payments deals. Fidelity National Services Inc. struck a $34 billion deal for Worldpay Inc. in March, two months after Fiserv Inc. agreed to buy First Data Corp. for $22 billion.
„We are not surprised that two of the larger players left standing are contemplating their options, including a potential tie-up,” Steven Kwok, an analyst with Keefe, Bruyette & Woods Inc., said in a research note Friday. „We think there are multiple options that may make sense – merger, JV, partnership.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
