8-KAcquisitions & DispositionsExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Acquisition Completed (Jun 19, 2009)

Filed June 19, 2009For Securities:GPN

Summary

Global Payments Inc. (GPN) filed an 8-K on June 19, 2009, reporting the completion of its acquisition of the remaining 49% stake in HSBC Merchant Services LLP for $307.7 million in cash. This acquisition, which closed on June 12, 2009, brings the Company's ownership of the LLP to 100%. The LLP is a significant entity providing payment processing services to merchants in the United Kingdom and globally for internet transactions. This move represents a strategic expansion for Global Payments, consolidating full ownership of a key international business unit. The prior 51% acquisition of the LLP occurred on June 30, 2008, for $439 million. Additionally, the report highlights the extension of an exclusive marketing alliance with HSBC Bank plc until June 2019, ensuring continued merchant referrals and bank sponsorship, which is crucial for GPN's ongoing growth and market penetration in the UK and beyond.

Key Highlights

  • 1Global Payments Inc. acquired the remaining 49% of HSBC Merchant Services LLP on June 12, 2009.
  • 2The total consideration for the 49% stake was $307.7 million in cash.
  • 3This acquisition results in Global Payments owning 100% of HSBC Merchant Services LLP.
  • 4HSBC Merchant Services LLP operates in the UK and provides internet payment processing globally.
  • 5The initial 51% acquisition of the LLP was completed on June 30, 2008, for $439 million.
  • 6The exclusive marketing alliance with HSBC Bank plc has been extended to June 2019.
  • 7The extended alliance ensures continued merchant referrals and bank sponsorship.

Frequently Asked Questions

This 8-K filing announces the completion of Global Payments Inc.'s acquisition of the remaining 49% interest in HSBC Merchant Services LLP, making them the sole owner of the subsidiary.

The total consideration for the 49% stake was $307.7 million, added to the $439 million paid for the initial 51% stake, bringing the total investment to $746.7 million.

The extension of the exclusive marketing alliance to June 2019 is significant as it guarantees continued merchant referrals and bank sponsorship from HSBC, which is vital for Global Payments' customer acquisition and market presence, especially in the UK.

HSBC Merchant Services LLP provides payment processing services to merchants, specifically serving merchants in the United Kingdom and internet merchants on a global scale.