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A merger, joint venture or potential partnership could be considered for Global Payments Inc. and Total System Services Inc. (TSYS). The two central merchandise processors held preliminary discussions on a combination of some sort, according to a report late Thursday by Bloomberg.com.
In addition to traditional merchant processing, Global Payments and TSYS target integrated payments through software developers. In his last report on the results, Global payments cited the growth of integrated payments in North America as strong. For its part, TSYS has revived its Vital brand for the Vital POS and launched a mobile point-of-sale business with mobile phone operator T-Mobile US Inc., called GoPoint. It is also a leading provider of processing services for credit card issuers.
If an agreement is reached this year, it would be the third largest mégamerger in 2019 in the payments sector. Basic processor Fiserv Inc. announced in January its intention to acquire First Data Corp. for $ 22 billion and in March its competitor Fidelity National Information Services Inc. (FIS) announced a $ 43 billion deal with Worldpay Inc.
A relationship between Global Payments and TSYS is not surprising, says investment firm Keefe, Bruyette & Woods Inc. research note Friday. "Given the two large mergers that have already occurred in space this year …, we are not surprised that two of the biggest players left are considering their options, including a potential merger," said KBW . "We believe that several options may be useful (merger, joint venture, partnership) depending on the assets and strengths of each company (GPN on the acquisition side of the merchant and TSS on the side of the credit card issuer's processing ). are the stock symbols of both companies.
At the start of trading on Friday, Global Payments shares were valued at $ 152.92, an increase of 5% from $ 147.96 at Thursday's close. The company had a market capitalization of $ 24 billion, according to Yahoo! Finance. TSYS shares, at $ 109.61, were up 10% from yesterday's close of $ 99.62. Its market capitalization was $ 19.4 billion. Neither Global Payments nor TSYS responded to a request Digital transactions investigation.
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