Jeffrey Sloan, CEO, Global Payments
Scott Mlyn | CNBC
Payment technology company Global Payments is close to agreement to acquire Peer Total System Services for approximately $ 20 billion as part of an all-stock deal expected to be announced on Tuesday.
People have requested anonymity because the interviews are confidential.
The total system inventory has skyrocketed after the CNBC report. In the early afternoon it rose by almost 1
Global Payments declined to comment while Total System Services did not respond to a request for comment.
Total Systems Services, headquartered in Columbus, Georgia, commonly known as TSYS, is on sale, representing a market capitalization of $ 17.6 billion. Atlanta-based Global Payments has grown 45% over the same period and currently has a market capitalization of $ 23.3 billion.
The combined company plans to refinance. Bank of America will lead the refinancing and advise Global Payments on the transaction. A spokesman for Bank of America declined to comment.
The deal would be the latest in a flurry of payment technology activity. Financial technology provider Fiserv announced in January plans to acquire First Data as a $ 22 billion payment service provider. In March, fintech group Fidelity National Information Services announced plans to buy Worldpay for around $ 35 billion.
Consolidation is taking place as established finance companies seek to compete with emerging technology companies such as Square and PayPal, which offer technology-driven services. In the past year, VC funds for payments and settlements increased to a total of 4.4 billion US dollars – according to PitchBook an increase of 46% over the previous year.
Global Payments and TSYS were active acquirers in recent years – with the goal of investing in TSYS last year, the payment company iMobile3 for small businesses and the payment company TransFirst for retailers in 2016.
Global Payments announced plans to Acquisition of Heartland Payment Systems for approximately $ 4.3 billion in 2015 and the payment of restaurants to technology company SICOM Systems for $ 415 million in 2018.
Bloomberg reported that Global Payments and Total System Services on Thursday were in preliminary contract negotiations.