Global Payments, Total System Services Announce Merger Of Equals: What You Need To Know

Payment technology and software solutions provider Global Payments Inc GPN reached an agreement Tuesday to merge with Total System Services, Inc. TSS.

What Happened

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.

The all-stock agreement will see Total System shareholders receive 0.8101 Global Payment shares for each Total System share held, the companies said in a Tuesday press release. 

Why It's Important

The merger of equals is expected to create the "preeminent technology-enabled payments company" boasting an "unmatched" global presence, according to the press release.

The deal is expected to generate a compelling value creation with EPS accretion in the mid-single digits in 2020 and low-double digits in the following years, the payment companies said. 

The merger better positions the two companies to address the "most attractive" end markets in payments by combining Total System's e-commerce and omnichannel business with Global Payments' business, according to the announcement. 

What's Next

Total System shareholders will own 52 percent of the combined entity on a fully diluted basis. Once completed, the board of directors will consist of six appointees from Global Payments and six from Total System.

Total Systems CEO Troy Woods will assume the role of chairman of the board, while Global Payments CEO Jeff Sloan will serve as CEO of the new company and hold a board seat.

The remaining executive team will consist of an equal number of individuals from both companies.

Shareholders of both companies will need to vote on the merger; the transaction is not subject to any financing conditions.

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