Global Payments has reached an agreement to acquire merchant acquiring business of Canadian cooperative Desjardins Group.
The acquisition will provide Global Payments with a portfolio of nearly 40,000 merchants.
The two companies also agreed to sign an exclusive ten-year marketing alliance. Under the arrangement, Desjardins will recommend members to Global Payments looking for payment technology and acquiring solutions.
Global Payments president and COO Cameron Bready said: “We are delighted to enter into this agreement with Desjardins, validating the distinctiveness of our pure play payments model and building on our successful track record of being the partner of choice for leading financial institutions globally.
“This partnership will allow us to leverage the breadth and depth of our technology solutions, local and worldwide payments expertise, modern architecture and comprehensive distribution in Canada to provide best-in-class service to Desjardins’ members.”
Desjardins Group is one of the largest financial institutions in Canada with assets of C$310.9bn. Its merchant acquiring business offers payment solutions across various industry segments.
Desjardins COO Denis Berthiaume said: “We’re proud to announce a new partnership that will provide our customers with the best payment technology solutions available in the market.
“Global Payments has a strong reputation in the Canadian market for unparalleled payments expertise and innovative solutions that can help drive business efficiencies and position our customers for growth.”
The deal is slated to close by early 2020, subject to regulatory approvals and other closing conditions.
Notably, Global Payments completed acquisition of TSYS, a payments solutions provider, last month. The all-stock deal was valued at $21.5bn.