8-KMaterial AgreementsExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Jun 17, 2008)

Filed June 17, 2008For Securities:GPN

Summary

Global Payments Inc. (GPN) announced a significant strategic move on June 17, 2008, by entering into a definitive agreement to form a joint venture with HSBC Bank plc. This venture, to be named HSBC Merchant Services, will focus on providing payment processing services to merchants in the United Kingdom and internet merchants globally. The partnership represents a substantial expansion for Global Payments into the UK market and a key step in its international growth strategy.

Key Highlights

  • 1Global Payments Inc. entered into a purchase agreement and limited liability partnership with HSBC Bank plc on June 17, 2008.
  • 2The new entity, HSBC Merchant Services, will provide payment processing services to UK merchants and global internet merchants.
  • 3Global Payments will acquire a 51% majority ownership in the partnership by paying HSBC $439 million in cash.
  • 4HSBC will retain a 49% ownership and contribute its existing UK merchant acquiring business to the partnership.
  • 5Global Payments will manage the day-to-day operations and consolidate the partnership's financial results.
  • 6A ten-year marketing alliance is established where HSBC will refer customers to the partnership in the UK.
  • 7The transaction is subject to regulatory approvals and customary closing conditions, with an expected completion within two months.

Frequently Asked Questions

Global Payments Inc. is announcing a significant agreement to form a joint venture with HSBC Bank plc to create a new payment processing entity named HSBC Merchant Services, focusing on the UK and global internet merchant markets.

Global Payments will pay HSBC $439 million in cash for a 51% majority ownership stake in the newly formed partnership.

HSBC will retain a 49% ownership in the partnership, contribute its existing UK merchant acquiring business, and has committed to a ten-year marketing alliance to refer customers in the United Kingdom.

The transaction is anticipated to be completed within two months, pending regulatory approvals and satisfaction of customary closing conditions.