Global Payments Inc. (NYSE: GPN) has reached a significant milestone in its strategic transformation with the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting periods on July 18, 2025, clearing a major regulatory hurdle for its acquisition of Worldpay Holdco, LLC from Fidelity National Information Services, Inc. (FIS) and affiliates of GTCR LLC, alongside the divestiture of its Issuer Solutions business to FIS. This development marks a pivotal step in Global Payments’ ongoing efforts to streamline its business model and enhance its market position in the payments technology sector.
The acquisition of Worldpay Holdco, LLC complements Global Payments’ prior strategic moves, including the \(4.3 billion acquisition of EVO Payments in 2023, which significantly expanded its integrated payments and B2B capabilities. The EVO acquisition alone contributed approximately \)10.1 billion in revenue for fiscal year 2024, with an operating income of \(2.33 billion and net income attributable to the parent company of \)1.57 billion, underscoring the scale and profitability of Global Payments’ expanded operations.
The divestiture of the Issuer Solutions business to FIS aligns with Global Payments’ strategy to focus on its core corporate and financial institution customer base, simplifying its business model and enhancing operational efficiency.
Global Payments reported a robust financial performance in FY 2024, with revenues of \(10.1 billion and operating income of \)2.33 billion. The company is on track to realize $135 million in annual run-rate expense synergies from the EVO acquisition within two years, driven by operational efficiencies and streamlined technology infrastructure.
Looking ahead to 2025, Global Payments anticipates adjusted net revenue growth of 6-7%, with continued margin expansion driven by technology enablement and synergy realization from recent acquisitions. The company plans to maintain a balanced capital allocation strategy, including debt reduction and share repurchases, supported by a healthy balance sheet with approximately $3.5 billion in available liquidity and a weighted average cost of debt of 3.78%.
Management commentary from recent earnings calls highlights strong integration progress with EVO Payments, emphasizing cross-selling opportunities, expansion into new geographic markets such as Poland, Greece, Mexico, and Ireland, and enhanced B2B software and payment solutions. The combined entity’s presence in over 40 countries and the ability to transact in over 170 currencies position Global Payments as a leading global payments technology provider.
CEO Cameron Bready expressed optimism about the acquisition’s potential, stating, “We are more excited today than when we announced the transaction about opportunities we have to cross-sell our products and capabilities into EVO’s existing customer base.”
Global Payments operates in a dynamic environment characterized by ongoing macroeconomic uncertainties, including inflation, foreign exchange volatility, and geopolitical tensions. Despite these challenges, the company has demonstrated resilience and adaptability, leveraging technology-driven growth and strategic acquisitions to enhance its competitive moat.
The expiration of the HSR waiting periods for the Worldpay acquisition represents a critical regulatory milestone for Global Payments, reinforcing its strategic pivot towards a simpler, technology-enabled payments business. With strong financials, ongoing synergy realization, and a clear growth trajectory, Global Payments is well-positioned to capitalize on secular growth trends in the global payments industry.
For detailed information, refer to the original 8-K filing here.
Tags: GPN, GlobalPayments, FY2025, PaymentsTechnology, StrategicAcquisition, FinancialSynergies