Global Payments, a provider of payment technology services, has agreed to acquire Heartland Payment Systems for $4.3bn.
In addition to strengthening Global Payments’ US direct small and medium-sized enterprise distribution, merchant base and vertical presence, the acquisition is expected to create a combined entity that will be owned by about 84% of existing company shareholders and serve nearly 2.5 million customers.
The merger will create an opportunity to cross-sell Heartland’s point of sale, payroll, loyalty and gift solutions into Global Payments’ core US and international market.
The transaction, which is subject to approval by regulators and Heartland’s shareholders, is expected to close in fiscal 2016 fourth quarter.
Global Payments CEO Jeffrey Sloan said: "This partnership with Heartland marks a major milestone for our company, significantly enhancing our direct presence in our largest market and transforming Global Payments into the leading provider of integrated payments technology solutions in the world."
Heartland chairman and CEO Robert Carr said: "Under Jeff’s leadership, I believe the combination of our companies will become the most valuable payments company on the planet. In the U.S., Heartland will continue to operate under its brand and under its business model of fair dealing–with the Merchant Bill of Rights and the Sales Professional Bill of Rights guiding the way to future growth and innovation."