Aug 1 (Reuters) – Global Payments Inc ( GPN.N ) said on Monday it would buy small peer EVO Payments ( EVOPO.O ) for about $4 billion, including debt, as the fintech company seeks to expand its footprint in the business-to-business (B2B) space.
Companies like EVO strive to digitize and streamline B2B payments, which are often more complex than business-to-consumer payments, as they involve dealing with multiple domestic and overseas merchants.
In premarket trading, nearly 20% of EVO shares opened higher with higher earnings.
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The deal will give Georgia-based Global Payments access to new markets including Poland, Germany, Chile and Greece, as well as help it grow its business in markets such as the United States and Canada, the company said.
EVO has a strong presence in Europe, accounting for nearly 40% of its revenue in the first three months of this year.
The $34 per share offer is a 24% premium to Evo stock’s last close. The deal is expected to close in the first quarter of 2023, the company said.
Global Payments also said it will receive a $1.5 billion investment in convertible notes from private equity firm Silver Lake.
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Reporting by Niket Nishant in Bengaluru; Editing by Vinay Dwivedi
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