Global Payments & Heartland Payment Ink $4.3B Deal

ATLANTA and PRINCETON, N.J.  — Global Payments Inc. announced it will acquire Heartland Payment Systems Inc. for approximately $4.3 billion.

The transaction significantly expands Global Payments’ U.S. direct small and medium-sized enterprise distribution, merchant base and vertical reach. Heartland’s strengths in direct sales and technology-led distribution are highly complementary to Global Payments’ expertise in 60 vertical markets with 2,000 technology partners, Atlanta-based Global Payments stated.

Global Payments expects to accelerate revenue growth by combining Heartland’s expertise in technology solutions with its OpenEdge partner integration, network and marketing capabilities to create a distinctive set of solutions and distribution. In addition, Global Payments plans to leverage Heartland’s product and sales capabilities globally through direct distribution in the 29 countries in which Global Payments currently does business, the company added.

According to Global Payments, the transaction was unanimously approved by both companies’ board of directors. It will be mid-single digit accretive on a percentage basis to cash earnings per share in fiscal 2017 and double-digit accretive thereafter. Global Payments expects to realize at least $50 million in synergies in fiscal 2017 and approximately $125 million of annual run-rate synergies thereafter.

“This partnership with Heartland marks a major milestone for our company, significantly enhancing our direct presence in our largest market and transforming Global Payments into the leading provider of integrated payments technology solutions in the world,” said Jeffrey S. Sloan, CEO of Global Payments. “The combination of strong businesses and cultures in high growth markets will generate exceptional opportunities for our employees, customers, partners and shareholders worldwide.”

The combination of Global Payments and Heartland will be “transformative” for the worldwide payments industry, added Robert O. Carr, chairman and CEO of Princeton-based Heartland. “Under Jeff’s leadership, I believe the combination of our companies will become the most valuable payments company on the planet. Heartland is excited to team with a truly international company. In the U.S., Heartland will continue to operate under its brand and under its business model of fair dealing — with the Merchant Bill of Rights and the Sales Professional Bill of Rights guiding the way to future growth and innovation.”