Payment technology company Global Payments has announced it would buy its industry peer Total System Services (TSYS) for USD 21.5 billion in stock, a premium of 20.3 to TSYS’s closing share price last Thursday, according to CNBC.
Companies in this industry are consolidating in order to resist increased competition from banks who are making moves towards digital and fintech solutions. This is the third such major deal this year, after Fidelity National Information Services bought Worldpay for USD 35 billion and Fiserv took over First Data for USD 22 billion.
Global Payments CEO Jeff Sloan said for CNBC that the deal would allow the company “to continue to make investments we need to make to stay ahead of the curve.” The deal is expected to close in the fourth quarter of 2019.
The global payment market is expected to reach USD 3 trillion per year in revenue by 2023, according to McKinsey.