Fintech firm Global Payments said it is moving ahead with the acquisition of smaller peer EVO Payments for nearly $4 billion including debt as it seeks to expand its footprint in the B2B services sector, Reuters reports.
Companies like EVO seek to digitize and streamline B2B payments, which are typically more complex than business-to-consumer payments as they involve transactions with multiple domestic as well as foreign merchants.
EVO shares jump nearly 20% in premarket trading.
The deal will give Global Payments access to new markets, including Poland, Germany, Chile and Greece, while helping it expand its presence in existing markets such as the US and Canada, it said. the fintech company.
EVO has a significant presence in Europe, where almost 40% of its revenue came from in the first three months of this year.
The takeover offer of $34 per share represents a 24% premium over EVO’s closing share price.
The deal is expected to close by the first quarter of 2023, the company said.
Global Payments also announced that it will receive a $1.5 billion investment from private equity firm Silver Lake, in the form of convertible bonds.
Source: Capital
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