The two companies confirmed the deal today (May 28) in what will be the payment industry’s third “mega-merger” of 2019. The all-stock deal values TSYS at $119.86 per share, a rise of 20% since before news of the talks started to emerge.
Global Payments shareholders will own 52% of the combined company, while TSYS investors own 48%. TSYS CEO Troy Woods will become the chairman.
The combined entity will provide payment technology and software to more than 3.5 million small to medium-sized merchants and over 1,300 financial institutions worldwide.
It is expected that the deal, anticipated to close in the fourth quarter, will generate around $8.6 billion in adjusted net revenue annually plus network fees and make cost savings of $300 million.
TSYS was founded in 1983 and is headquartered in Columbus, Georgia. The company demonstrated its Authorization Controls solution at FinovateAsia 2013, showing how the technology enabled users to set their own default account parameters and authorization rules.
Global payments provider TSYSannounced this week that J.P. Morgan will leverage the fintech’s Virtual Payment Precept (VPP) to broaden its virtual card solution.
TSYS’ VPP is a commercial card solution that enables issuers to generate secure, virtual, single-use account information in real-time, offering a more flexible and faster card issuance program that gives more control over account and transaction parameters. J.P. Morgan will use VPP to issue cards on both Visa and Mastercard networks.
“Virtual cards are a vital component of our clients’ payments strategy and business operations and this will continue to power our clients’ and suppliers’ growth,” said Naney Pandit, Head of Commercial Card Product at J.P. Morgan.
VPP technology allows businesses to set limits on what each account can be used for. And virtual cards replace static account numbers on physical cards that are vulnerable of being compromised. These two factors help reduce risk and improve operational efficiency.
TSYS demoed its Spend Controls feature at FinovateEurope 2013 in London. Last December, the company extended its agreement with Capital One to continue providing processing services for the bank’s North American clients. That same month, TSYS closed its acquisition of payment technology company Cayan for $1.05 billion.
TSYS was founded in 1983 and has 11,500 employees across offices in 13 countries. In 2016, the company processed 25.5 billion transactions, generating $4.2 billion in revenue. TSYS is a publicly traded company (NYSE: TSS).
Payments service provider TSYS has boosted its portfolio this week. The Georgia-based company has agreed to acquire Cayan, a payment technology company, for $1.05 billion. TSYS expects the deal to modestly benefit its net revenue growth and adjusted earnings per share.
Cayan’s flagship platform, Genius, provides a scalable, unified commerce experience across channels. The company offers merchant acquiring services to 70,000+ companies and 100+ U.S.-based partners.
M. Troy Woods, Chairman, President and Chief Executive Officer of TSYS, said that this acquisition “strategically complements” the goals TSYS has “to become a leading payment solutions provider to small and medium size businesses.” Woods continued, “The addition of Cayan’s unified commerce solutions puts us in a strong competitive position to jointly offer a broader set of value-add products and services to our partners and merchants.”
The acquisition has been approved by the TSYS Board of Directors and is expected to close in the first quarter of next year.
TSYS was founded in 1983 and has 11,500 employees across offices in 13 countries. Last year, the company processed 25.5 billion transactions, generating $4.2 billion in revenue. TSYS demoed its Spend Controls feature at FinovateEurope 2013 in London. Last week, the company extended its agreement with Capital One to continue providing processing services for the bank’s North American clients. This October, TSYS company expanded its ProPay merchant services to Australia and, earlier in the summer, teamed up with behavioral analytics company Featurespace to bolster its fraud prevention capabilities. TSYS is a publicly traded company (NYSE: TSS).