Summary
This Form 8-K/A filing by GLOBAL PAYMENTS INC. (GPN) amends a previous filing to provide crucial financial details regarding its acquisition of a 51% stake in HSBC Merchant Services LLP, which was completed on June 30, 2008. The acquisition, costing $439 million in cash, significantly expands GPN's operations into payment processing services for merchants in the United Kingdom and globally via the internet. Investors should note that this filing includes the necessary financial statements for the acquired business (HSBC Bank plc – Card Processing Division) and pro forma financial information reflecting the combined entity. This information is essential for understanding the immediate financial impact and potential future performance of GPN post-acquisition. The funding for this strategic move was a mix of existing cash reserves, a recent term loan, and its revolving credit facility.
Key Highlights
- 1Global Payments Inc. completed the acquisition of 51% of HSBC Merchant Services LLP on June 30, 2008.
- 2The total consideration for the acquired stake was $439 million in cash.
- 3The acquired entity, HSBC Merchant Services LLP, provides payment processing services to UK and global internet merchants.
- 4The acquisition was financed through cash on hand, a $200 million term loan, and borrowings under its existing revolving credit facility.
- 5This filing includes audited financial statements for the acquired business (HSBC Bank plc – Card Processing Division) for the year ended December 31, 2007.
- 6Pro forma financial information, including a balance sheet as of February 29, 2008, and income statements for relevant periods, is provided.
- 7The acquisition represents a significant expansion into the UK and global internet merchant payment processing markets.