Global Payments Inc. (GPN) announced the completion of its purchase of Ezi Holdings Pty Ltd (Ezidebit), an integrated payments company based in Brisbane, Australia. The acquisition will enable it to expand its footprint in the high-growth Asia-Pacific region.
The transaction was valued at $268 million. The purchase was funded by a combination of cash on hand and borrowings on the company’s revolving credit facility.
Ezidebit specializes in recurring payment verticals in New Zealand and Australia. It processes over $3.5 billion of transactions annually in Australia, New Zealand and Hong Kong.
Comparable to Global Payments’ OpenEdge division, Ezidebit uses a network of integrated software vendors and direct channels for marketing its offerings. The deal will give Global Payments access to this established network.
The integration of Global Payments’ technology and integrated payment capabilities with Ezidebit’s technology-based, direct distribution solutions augur well for expanding the former’s global footprint by exploiting new markets.
The acquisition is in tune with the company’s strategy of deepening distribution channels across vertical market segments and strengthening its breadth of integrated payment processing solutions via acquisitions.
Global Payments previously acquired Accelerated Payment Technologies in 2012 and Payment Processing, Inc. (PayPros) in January this year, looking to leverage their wide network of technology-based enterprise software partners.
For the remainder of fiscal 2015, Global Payments expects the acquisition to add roughly $25 million to revenues and be marginally accretive to the company’s cash operating margins. Global Payments’ revenue forecast for the fiscal year 2015 lies in the range of $2.69 billion to $2.76 billion. However, the deal is expected to be dilutive to fiscal 2015 GAAP earnings per share.
Global Payments currently carries a Zacks Rank #2 (Buy). Other notable stocks in the financial transaction services industry that warrant a look include Fiserv, Inc. (FISV), MasterCard Incorporated (MA) and Visa Inc. (V), each holding the same rank as Global Payments.
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