- Divestiture is latest in series of transactions designed to simplify business
- Transaction proceeds to be used to return capital to shareholders
Global Payments Inc. (NYSE:GPN), a leading worldwide provider of payment technology and software solutions, announced today that it has entered into a definitive agreement to divest its Payroll business to Acrisure, a financial technology company based in Grand Rapids, Michigan for total consideration of $1.1 billion.
Global Payments intends to use the after-tax proceeds from the divestiture to return capital to shareholders while maintaining leverage neutrality.
The divestiture of its Payroll business is the latest step Global Payments has taken to further simplify its business and position the company as a leading pure play commerce solutions provider for merchants of all sizes. As part of the transformation program outlined at its September 2024 Investor Conference, Global Payments also recently announced agreements to divest its Issuer Solutions business and acquire Worldpay, and closed its sale of AdvancedMD.
"I am pleased with the progress we are making with our transformation program as we move aggressively to simplify our business and enhance value for shareholders," said Cameron Bready, CEO of Global Payments. "This transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated, while also positioning the payroll business to benefit from greater scale and investment moving forward."
In connection with the transaction, Global Payments entered into a mutual referral agreement and long-term commercial partnership with Acrisure in which Global Payments will continue delivering fully integrated human capital management and payroll offerings to its merchant customers as part of its suite of commerce enablement solutions.
The transaction is expected to close in the second half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions.
About Global Payments
Global Payments (NYSE:GPN) helps businesses around the world enable commerce and provide exceptional experiences to their customers. Our payment technology and software solutions enable merchants, issuers and developers to deliver seamless customer experiences, run smarter operations and adapt quickly to change. Because if it has anything to do with commerce, we are already on it.
With 27,000 team members across 38 countries, we have the scale and expertise to help businesses grow with confidence. Headquartered in Georgia, Global Payments is a Fortune 500® company and a member of the S&P 500.
Learn more at company.globalpayments.com and follow us on X, LinkedIn and Facebook.
Forward-Looking Statements
This communication may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and assumptions that could significantly affect the financial condition, results of operations, business plans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-looking statements. Accordingly, we cannot guarantee that our plans and expectations will be achieved. Examples of forward-looking statements include, but are not limited to, statements we make regarding future financial and operating results, including revenue, earnings estimates, liquidity, and deleveraging plans, management's expectations regarding future plans, objectives and goals; market and growth opportunities; capital available for allocation; the effects of general economic conditions on our business; statements about the strategic rationale and anticipated benefits of acquisitions or dispositions, such as the proposed dispositions of the Payroll and Issuer Solutions businesses or the proposed acquisition of Worldpay (the "Transactions"), including future financial and operating results, and the successful integration of our acquisitions; statements about the completion of anticipated benefits and strategic or operational initiatives; statements regarding our success and timing in developing and introducing new services and expanding our business; and other statements regarding our future financial performance and the company's plans, objectives, expectations and intentions. Statements can generally be identified as forward-looking because they include words such as "believes," "anticipates," "expects," "intends," "plan," "forecast," "could," "should," "will," "would," or words of similar meaning. Although we believe that the plans and expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our plans and expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.
In addition to factors previously disclosed in Global Payments' reports filed with the SEC and those identified elsewhere in this presentation, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: Global Payments' ability to complete the proposed Transactions on the proposed terms or on the anticipated timelines, or at all; failing to fully realize anticipated cost savings and other anticipated benefits of the proposed Transactions when expected or at all; business disruptions from the proposed Transactions that will harm Global Payments' businesses, including current plans and operations; the diversion of management's attention from ongoing business operations; the continued availability of capital and financing; the effects of global economic, political, market, health and social events or other conditions; the imposition of tariffs and other trade policies and the resulting impacts on market volatility and global trade; macroeconomic pressures and general uncertainty regarding the overall future economic environment; foreign currency exchange, inflation and rising interest rate risks; the effects of a security breach or operational failure on our business; the ability to maintain Visa and Mastercard registration and financial institution sponsorship; difficulties, increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets; our ability to safeguard our data; risks associated with our indebtedness; the potential effect of climate change including natural disasters; the effects of new or changes in current laws, regulations, credit card association rules or other industry standards on us or our partners and customers, including privacy and cybersecurity laws and regulations; and other events beyond our control, and other factors included in the "Risk Factors" section in our most recent Annual Report on Form 10-K and in other documents that we file with the SEC, which are available at https://www.sec.gov.
These cautionary statements qualify all of our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. While we may elect to update or revise forward-looking statements at some time in the future, we specifically disclaim any obligation to publicly release the results of any revisions to our forward-looking statements, except as required by law.
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