8-KMaterial AgreementsExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Aug 16, 2012)

Filed August 16, 2012For Securities:GPN

Summary

Global Payments Inc. announced on August 14, 2012, a definitive agreement to acquire Accelerated Payment Technologies (APT) for $413 million in cash. APT is a provider of integrated payment solutions targeting small to medium-sized merchants, processing approximately $8 billion in annual card volume and utilizing a network of 700 value-added resellers across various vertical markets. This acquisition is expected to close in the Company's second fiscal quarter of 2013, subject to regulatory approvals and customary closing conditions. Notably, Global Payments already processes the majority of APT's transactions, indicating that the revenue impact of this acquisition is not expected to be material. Investors should note that further details regarding the transaction will be disclosed upon closing.

Key Highlights

  • 1Global Payments Inc. to acquire Accelerated Payment Technologies (APT) for $413 million in cash.
  • 2APT provides integrated payment solutions to small and medium-sized merchants.
  • 3APT processes approximately $8 billion in annual card volume.
  • 4APT utilizes a network of 700 value-added resellers (VARs) across 30 vertical markets.
  • 5Global Payments currently processes the majority of APT's transactions, suggesting minimal immediate revenue change.
  • 6The acquisition is expected to close in the second fiscal quarter of 2013.
  • 7The transaction is subject to regulatory approvals and customary closing conditions.

Frequently Asked Questions

While the filing does not explicitly detail the strategic rationale, the acquisition of APT, a provider of integrated payment solutions for small to medium-sized merchants, likely aims to expand Global Payments' market reach, enhance its merchant services offerings, and potentially leverage APT's existing VAR network and vertical market penetration.

The acquisition cost is $413 million in cash. However, Global Payments currently processes the majority of APT's transactions, which the company states means its revenue will not materially change as a result of the acquisition. Further financial details will be provided upon closing.

The acquisition is anticipated to close during Global Payments' second fiscal quarter of 2013, contingent upon obtaining necessary regulatory approvals and satisfying customary closing conditions.

APT is a provider of fully-integrated payment solutions primarily serving small to medium-sized merchants. They process around $8 billion in annual card volume and distribute their products and services through a network of 700 value-added resellers across 30 different vertical markets.