You've got disruptors coming in. The company will maintain dual headquarters. “It’s the right deal at the right time,” Woods said in a telephone interview. Global Payments declined to comment, while Total System Services did not respond to a request for comment. Stock Advisor launched in February of 2002. And what do you do where Square has a growing -- a rapidly growing point-of-sale lending business? The combined entity is forecast to generate about $8.6 billion annually in adjusted net revenue plus network fees, with $3.5 billion in earnings before interest, taxes, depreciation and amortization and $2.5 billion in free cash flow. Have a confidential tip for our reporters? Global Payments Inc. agreed to buy Total System Services Inc. in a deal valued at $21.5 billion, the payment industry’s third mega-merger of the year. Global Payments primarily facilitates payment processing for merchants, while Total System Services, commonly referred to as TSYS, chiefly handles payment processing for card-issuing financial institutions. Total System Services, a global payments provider that offers solutions across the issuing, merchant and consumer segments, will combine with Global Payments in a merger of equals. This combination creates more efficient payments for businesses and financial institutions by enabling faster transactions, higher authorization rates, quicker settlements and better fraud detection. The rationale given for the merger by both management teams was the significant revenue and cost synergies the deal would help the new company realize. Global Payments will buy Total System Services in an all-stock deal valued at $21.5 billion, the third major acquisition in the payment technology sector this year. Under the deal terms, Total System holders will get 0.8101 Global Payments share for each common share they own. View Now. Global Payments has inked a deal to acquire Total System Services (TSYS) in a $21.5 billion deal. Global Payments is based in Atlanta and TSYS is based in Columbus, Georgia. Those are small-ticket items each individually. The Columbus, Georgia-based firm is the country’s largest provider of such services, managing about 40% of Visa Inc. and Mastercard Inc. domestic accounts last year. The combined company will have a worldwide customer base of 3.5 million merchants, 1,300 financial institutions, and 600 million cardholders, and will facilitate approximately $50 billion of transactions per year. The company will maintain dual headquarters. Bready said the two companies have areas where there is "significant overlap," creating opportunities to cut costs with little risk. Atlanta-based Global Payments, on the other hand, is the country’s fifth-biggest merchant acquirer, helping businesses handle credit- and debit-card payments. More important than even the mammoth sizes of these mergers and acquisitions is why they're all happening now. TSYS adds complementary issuing solutions to Global Payments acquiring services. Fiserv Inc. announced a $22 billion takeover of First Data Corp. in January, and rival Fidelity National Information Services Inc. agreed to buy Worldpay Inc. just two months later for $34 billion. Global Payments is buying Total System Services in an all-stock deal valued at $21.5 billion, the third major acquisition in the payment processing sector this year. Cumulative Growth of a $10,000 Investment in Stock Advisor, Global Payments Acquires Total System Services: Everything Investors Need to Know @themotleyfool #stocks $GPN $TSS $FIS $FISV $SQ, Why Global Payments Stock Fell 11.2% Last Month, Total System Services Inc (TSS) Q3 2020 Earnings Call Transcript, Total System Services Inc (TSS) Q2 2020 Earnings Call Transcript, Global Payments (GPN) Q1 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. Total System Services, Inc. (commonly referred to as TSYS), headquartered in Columbus, Georgia, provides payment processing services, merchant services and related payment services. Global Payments Inc. agreed to buy Total System Services Inc. in a deal valued at $21.5 billion, the payment industry’s third mega-merger of the year. We just felt like it made a lot of sense to control our own destiny and pick our dance partner.”. He is most familiar with the fintech and payments industry and devotes much of his writing to covering these two sectors. Most of these opportunities will come from leveraging TSYS's relationships with banks, especially those in foreign markets, to create joint ventures or use as referral partners to capture additional merchant-acquiring business. In both prior instances, the companies involved talked about the technological change the industry was seeing as an impetus for their deals. In January, Fiserv (NASDAQ:FISV) and First Data Corp. announced a $20 billion-plus acquisition, and then in March, Fidelity National Information Services (NYSE:FIS) agreed to acquire Worldpay for a whopping $35 billion. Dünyanın önde gelen ödeme teknolojisi şirketleri Global Payments ve Total System Services birleşme kararı aldılar. 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