Global Payments, a provider of payment technology services, has agreed to acquire the communities and sports divisions of Active Network from Vista Equity Partners for $1.2bn.
Active Network offers cloud-based, mission critical enterprise software, such as payment technology solutions, to event organisers in the communities and health and fitness sectors.
The deal does not include the outdoors division of Active Network.
To be paid in a combination of stock and cash, the deal is valued at $1.2bn, including a tax asset. Net of the tax asset, the effective purchase price stood at about $1bn.
As per terms of the transaction, Vista will receive $600m of Global Payments stock and $600m in cash. Global Payments will finance the cash portion using its existing credit facility and cash on hand.
Pending receipt of regulatory approvals and subject to customary closing conditions, the transaction is likely to be completed during the fourth quarter of 2017.
Commenting on the deal, Global Payments CEO Jeff Sloan said: “Active Network aligns perfectly with our technology-enabled, software driven strategy and complements our existing businesses well.
“With Active Network, we are adding an enterprise software business operating in two new vertical markets that are highly fragmented and underpenetrated with attractive growth fundamentals.”