Global Payments Inc. is expected to announce a roughly $20 billion deal for peer Total System Services Inc. on Tuesday, according to CNBC. The deal is expected to be an all-stock transaction, CNBC said, citing multiple anonymous sources. Global Payments and Total System Services didn’t respond to requests for comment about the potential deal. Total System Services shares are up 11.2% in midday trading Friday, while Global Payments shares are up 3.7%. “A combined TSYS-Global Payments entity would be a ~$40B market cap payments company with 8% share in U.S. merchant acquiring, and benefit from the similar customer segment focus of the two merchant acquiring business on the [small- and medium-sized business] segment,” wrote MoffettNathanson analyst Lisa Ellis. However, she sees other potential deals involving Global Payments as “equally, if not more, likely” given that the company is growing more quickly than Total System Services, which has seen its shares rise 37% this year as the S&P 500 has climbed 13%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Latest posts by Market Watch (see all)
- Jennifer Aniston declined my ‘Friends’ request — but she racked up 10M followers on Instagram in 2 days - October 17, 2019
- Upgrade: ‘Health care will keep us from going back to the U.S.,’ says Texas couple who retired to Spain on about $2,000 a month - October 17, 2019
- Market Extra: What a Brexit deal would mean for U.S. stocks and global investors - October 17, 2019