Payment processing company Global Payments will acquire Cincinnati-based rival Worldpay for more than $22 billion as it expands its global footprint.
The move strengthens the fintech company, enabling it to process approximately 94 billion transactions and $3.7 trillion in total payments in more than 175 countries.
Payment processing companies, including household names Visa and Mastercard, facilitate financial transactions between customers, businesses and banks. The industry is driven by consumer and business demand for electronic payments and banking services.
Atlanta-based Universal Payments will pay $22.7 billion in cash and stock in a three-way deal involving private equity firm GTCR and financial technology firm Fidelity National Information Services (FIS).
As part of the deal, Global Payments will sell its card issuance solutions unit to Fidelity National Information Services. Upon completion of the transaction, GTCR will hold a 15% stake in Global Payments.
Universal Payments said it expected first-quarter earnings of $2.69 per share, in line with Wall Street forecasts.