(Reuters) -Global Payments Inc said on Monday it would buy smaller peer EVO Payments Inc for nearly $4 billion including debt, as the fintech firm seeks to expand its footprint in the business-to-business (B2B) space.
Companies such as EVO strive to digitize and streamline B2B payments which are usually more complex than business-to-consumer payments as they involve dealing with several domestic and overseas merchants.
EVO shares, up nearly 20% in premarket trading, would open at a record-high, if gains hold.
The deal would give Georgia-based Global Payments access to new markets including Poland, Germany, Chile and Greece and also help scale-up its business in existing markets such as the United States and Canada, the company said.
EVO has a sizable presence in Europe which accounted for nearly 40% of its revenue in the first three months this year.
The offer of $34 per share is at a 24% premium to EVO stock’s last close. The deal is expected to close by the first quarter of 2023, the company said.
Global Payments said it would also receive a $1.5 billion investment from private equity firm Silver Lake in the form of convertible notes.
(Reporting by Niket Nishant in Bengaluru;Editing by Vinay Dwivedi)
Source: One America News Network
