Global Payments, Total System to merge in $21.5B stock deal – Seeking Alpha

Total System Services (NYSE:TSS) shareholders to get 0.8101 Global Payments (NYSE:GPN) shares for each share of TSS stock, reflecting a price per share of $119.86, or about 20% premium to TSS’s unaffected common share price at the close of May 23.

GPN shares falls 1.1% to $151.80 in premarket trading, while TSS rises 2.8% to $116.60.

Sees adjusted EPS accretion of mid-single digits in 2020 and low double digits thereafter on an operating basis.

Board to be made up of six members from Global Payments’ board and six members from TSS’s board; Troy Woods will be chairman and Jeff Sloan will be CEO and a member of the board.

Combined company is expected to have investment-grade credit ratings immediately on closing.

Combined company will have market leading positions in integrated payments, owned software in both merchant and issuing, increased scale in ecommerce and omnichannel solutions, and further exposure in faster growth geographies and digital payment trends.

The deal follows Fidelity National Information Services’ $34B deal for Worldpay and Fiserv’s $22B purchase of First Data, both of which took place earlier this year.

Conference call at 8:00 AM ET.

Previously: Global Payments nears deal to buy Total System for ~$20B in stock – Reuters (May 24)