Summary
Global Payments Inc. (GPN) announced on July 27, 2001, an agreement to purchase the 7.5% minority interest held by MasterCard International Incorporated in their joint venture, Global Payment Systems LLC. This transaction, expected to close by August 31, 2001, marks a significant step towards full ownership of a key processing entity for GPN. The acquisition is anticipated to be non-dilutive to GPN's earnings in fiscal year 2002, suggesting a positive impact on profitability without increasing the number of outstanding shares. Global Payment Systems LLC, formed in 1996, provides card processing and funds transfer services to financial institutions, a core area of GPN's broader business as a leading provider of electronic transaction processing services.
Key Highlights
- 1Global Payments Inc. has agreed to acquire MasterCard International's 7.5% stake in Global Payment Systems LLC.
- 2The transaction is expected to be completed before the end of GPN's first fiscal quarter of 2002 (August 31, 2001).
- 3The acquisition is projected to be non-dilutive to Global Payments' earnings in fiscal year 2002.
- 4Global Payment Systems LLC, a joint venture formed in 1996, offers card processing and funds transfer services to financial institutions.
- 5This move consolidates GPN's ownership of a significant entity within its payment processing operations.
- 6The filing includes standard forward-looking statement disclaimers regarding potential risks and uncertainties.