Global Payments Inc., a worldwide provider of electronic transaction processing solutions, announced an agreement to acquire Accelerated Payment Technologies (APT). APT is a provider of fully-integrated payment solutions for small to medium sized merchants producing approximately $8 billion in annual card volume. APT markets its products and services primarily through a network of 700 value-added resellers (VARs) covering 30 different vertical markets.
Global Payments' Chairman and CEO Paul R. Garcia said in a prepared statement, "Over the course of our long-standing relationship with APT, we have been impressed with the quality and growth of their payment technology solutions. APT serves merchants from attractive growth verticals such as the dental, medical, pharmacy, specialty retail, automotive and veterinary markets. We look forward to having their talented management team joinGlobal Payments."
Matthew T. Vettel, managing partner ofGreat Hill Partners, a Boston, Mass.-based private equity firm and owner of APT said, "The APT team has successfully positioned themselves as a leading provider of integrated payments with a rapidly expanding network of software partners. Global Payments has been a key strategic partner for APT, and we expect the combined businesses will continue to thrive."
Under the terms of the agreement and pending regulatory approvals and customary closing conditions,Global Payments will pay $413 million in cash to acquire APT from Great Hill Partners. The transaction is expected to close duringGlobal Payments' second fiscal quarter 2013. Global Payments currently processes the majority of APT's transactions under its existing ISO processing relationship and, as a result, Global Payments' revenue will not materially change. For the partial year of fiscal 2013, the company expects the transaction to be dilutive to fiscal 2013 earnings per share on a GAAP basis and about neutral on a cash earnings basis and accretive to cash earnings thereafter. Additionally, the company expects the transaction to be significantly accretive to both North American and total company cash operating margins on an annualized basis. The company will provide further details when the transaction closes.