10-QPeriod: Q3 FY2001

GLOBAL PAYMENTS INC Quarterly Report for Q3 Ended Aug 31, 2001

Filed October 12, 2001For Securities:GPN

Summary

Global Payments Inc. (GPN) filed its 10-Q for the period ending October 12, 2001. The report indicates that the company is involved in various legal proceedings, but management believes these will not materially impact the company's financial position, liquidity, or results of operations. No significant changes in securities, defaults on senior securities, or matters submitted to a vote of security holders occurred during the quarter. The filing primarily details recent business development activities and strategic partnerships. Key strategic moves highlighted include the expansion of an alliance with Comerica Bank following its acquisition of Imperial Bank, for which Global Payments will retain a majority interest in the expanded alliance and extend its original agreement. Additionally, the company entered into an agreement to acquire National Bank of Canada's merchant services business and establish a ten-year marketing alliance. The company also agreed to purchase MasterCard International Inc.'s minority interest in Global Payments LLC.

Key Highlights

  • 1Management asserts that all pending legal proceedings are incidental to the business and are not expected to have a material adverse impact on the company's financial health.
  • 2No new issuance, repurchase, or redemption of securities occurred during the period.
  • 3No defaults were reported on any senior securities.
  • 4The company expanded its alliance with Comerica Bank, acquiring Imperial Bank's merchant portfolio for $20.4 million and extending the agreement through March 2008.
  • 5Global Payments Inc. agreed to acquire National Bank of Canada's merchant services business and entered into a 10-year marketing alliance.
  • 6The company agreed to purchase MasterCard International Inc.'s 7.5% minority interest in Global Payments LLC.

Frequently Asked Questions

According to management, the company is party to several claims and lawsuits incidental to its business. However, management is of the opinion that the aggregate outcome of these matters will not materially adversely affect the company's financial position, liquidity, or results of operations.

The filing highlights significant business development activities, including the expansion of an alliance with Comerica Bank, the acquisition of National Bank of Canada's merchant services business coupled with a long-term marketing alliance, and the purchase of MasterCard International Inc.'s minority stake in Global Payments LLC.

This filing does not report any changes in securities, including issuances, repurchases, or redemptions.

Global Payments Inc. will pay $20.4 million for a majority interest in the expanded alliance, which includes Imperial Bank's merchant portfolio. The original alliance agreement has also been extended through March 2008.