Global Payments to buy Total System Services in fintech deal
The deal is the company's biggest yet and the sector’s third major acquisition in 2019 and comes as payment technology companies consolidate to battle competition from banks
Bengaluru — Payment technology company Global Payments said on Tuesday it will buy peer Total System Services (TSYS) for about $21.5bn in stock, adding scale in a fiercely competitive and fast-growing industry. The deal, Global Payments’ biggest yet and the sector’s third major acquisition in 2019, comes as payment technology companies consolidate to battle competition from banks making inroads into digital payments and fintech start-ups such as Adyen and Stripe chipping away market share. The global payment market is set to reach $3-trillion a year in revenue by 2023 as customers increasingly shift to digital payments from cash, according to consulting firm McKinsey. “We believe the deal marks a shift from [Global Payments’] pursuit of software and differentiated assets into more of a scale play,” Jefferies analysts wrote on a note on Sunday. “We do not believe a deal would face antitrust considerations nor do we expect another offer although we note that several banks have menti...
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