According to media reports, Global Payments announced the acquisition of Total System Services at $20 billion in Tuesday.
Shares in two companies closed double to new highs since they went public. The two payment tycoon acquisitions, announced in the first quarter of this year, were 35 billion of dollars and 22 billion of dollars, respectively.
According to Bloomberg News, Global Payments, a company in Atlanta, in consultation with Total System Services in Georgia, the two companies could make the third-largest acquisition in the payments industry this year, or form a joint venture or other forms of cooperation that would not include a full merger.
At the same time, CNBC News said global Payments was close to acquiring Total System Services at about $20 billion.
The stock deal is expected to be announced next Tuesday.
Bank of America is a trading adviser to Global Payments and will lead the refinancing of the combined company.
While Bloomberg News that the deliberations of two companies are still in their early stages may come to naught, it is worth noting that there have been two major mergers and acquisitions in the first quarter of this year’s payment sector.
January 16, 2019 Fiserv announced plans to buy payment processor first Data with a 22 billion-dollar full-stock acquisition.
March 18, 2019 (FIS), one of the largest providers of financial services technology in the United States, announced that it had agreed to buy a relatively small rival, Worldpay, in cash plus shares, on a scale of $35 billion.
Reuters commented that the FIS acquisition was the latest example in the financial software and payment technology sector and reflected the accelerating wave of consolidation in the emerging payments sector, with established companies looking to do big business to compete with disruptive newcomers.
The consolidation in payment technology comes as established financial companies seek to compete with new technology-driven services from the likes of Square and PayPal, CNBC commented.
PitchBook data showed that last year’s venture capital financing payments and payment processing reached $4.4 billion, up 46% from the year before.