Latest news with #CameronBready
Finextra
7 days ago
- Business
- Finextra
Global Payments to sell payroll unit for $1.1bn
Global Payments continues to simplify its business, agreeing to offload its payroll unit to fintech Acrisure for $1.1 billion. 0 The divestiture is the latest step Global Payments has taken to position itself as a pure play merchant solutions provider, shedding non-core businesses. In April it agreed a blockbuster deal to buy Worldpay from GTRC and FIS for $22.7 billion while offloading its Issuer Solutions business to FIS for $13.5 billion. Last year, it also sold its medical software business AdvancedMD for $1.13 billion. "I am pleased with the progress we are making with our transformation program as we move aggressively to simplify our business and enhance value for shareholders," says Cameron Bready, CEO, Global Payments. In connection with the payroll transaction, Global Payments has entered into a mutual referral agreement and long-term commercial partnership with Acrisure in which it will continue delivering human capital management and payroll offerings to its merchant customers. Proceeds of the deal - set to close the second half subject to regulatory approval - will be used to return capital to shareholders.
Yahoo
28-05-2025
- Business
- Yahoo
Global Payments to sell payroll unit for $1.1B
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Global Payments plans to sell its payroll software services business to Grand Rapids, Michigan-based Acrisure for $1.1 billion, the company said in a press release Wednesday. As part of the transaction, the companies also entered a commercial agreement under which Global Payments will continue to offer the human resources and payroll software services to its merchant clients, the release said. In a separate release Wednesday, Acrisure noted the unit is currently known as Heartland Payroll Solutions, but will be rebranded after the closing. The companies said they expect the deal to close in the second half of this year. 'This transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated, while also positioning the payroll business to benefit from greater scale and investment moving forward,' Global Payments CEO Cameron Bready said in the release. Atlanta-based Global Payment plans to sell off the payroll and human resources business as it seeks to narrow its focus on providing payments services to merchants and to streamline its operations around that purpose. The company earlier this year also divested its issuer business in a $13.5 billion sale to Fidelity National Information Services and last year sold its healthcare software Advanced MD unit to an investment firm for $1.1 billion. By contrast, Acrisure said the acquisition will allow it to keep diversifying the suite of software services it offers to its approximately 50,000 small and mid-sized business clients. The purchase will let it expand the human resource and payroll services it currently offers, and add to its other insurance, reinsurance and cybersecurity services. Acrisure, which recently raised $2.1 billion in a funding round that valued the company at $32 billion, will hire a Global Payments executive as part of the deal. The company said Vince Lombardo, the North America president for Global Payments' merchant solutions business, will become CEO of the Heartland Payroll business. The Heartland unit has about 1,000 employees, a spokesperson for Acrisure said in a statement via email. Acrisure plans to expand the unit's workforce as the business grows, according to the statement. 'All Heartland Payroll teams and employees currently dedicated to the payroll business will be given the opportunity to work at Acrisure,' the spokesperson added. Analysts who follow Global Payments noted that the sale falls in line with the company's plan to divest businesses that generate up to $600 million annually. While analysts for the investment firm Robert W. Baird & Co. estimated the Heartland unit generated between $125 million and $145 million in annual revenue, or about 1.5% of Global Payments' overall annual income, analysts for at the firm TD Cowen estimated a higher level, estimating the unit's revenue in the range of $250 million to $300 million. Recommended Reading FIS, Global Payments agree to Worldpay deal
Business Recorder
28-05-2025
- Business
- Business Recorder
Global Payments to sell payroll unit to fintech Acrisure for $1.1 billion
Global Payments said on Wednesday it would sell its payroll division, Heartland Payroll Solutions, to financial technology firm Acrisure for $1.1 billion, marking the payments company's latest attempt at simplifying its business model. Atlanta, Georgia-based Global Payments has been reviewing its business recently, selling off smaller units to become a pure-play payments processor to clients and improve profitability, which has taken a hit in recent quarters. Last month, the company announced the sale of its issuer solutions unit, which offers card processing and account services, to FIS tab for $13.5 billion as part of a three-way deal. Global Payments had also agreed to sell its medical software business AdvancedMD to investment firm Francisco Partners for $1.13 billion last year. 'This (latest) transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated,' said Global Payments CEO Cameron Bready. The company intends to use the proceeds from the divestiture of the payroll business to return capital to shareholders. Founded in 1997, Heartland Payroll caters to more than 50,000 clients, including Marathon Petroleum and Burger King, and will be rebranded after the deal closes — expected in the second half of 2025. Global Payments will partner with Acrisure to continue providing human capital management and payroll offerings to its merchant customers. The deal also comes when Acrisure is expanding beyond its core insurance brokerage business. The Grand Rapids, Michigan-based company had raised $2.1 billion at a $32 billion valuation in a Bain Capital-led funding round earlier this month. 'This significant acquisition accelerates our successful transformation into a fully scaled and diversified fintech platform,' said Acrisure CEO Greg Williams. Goldfinch Partners advised Acrisure on the transaction.
Reuters
28-05-2025
- Business
- Reuters
Global Payments to sell payroll business to Acrisure for $1.1 billion
May 28 (Reuters) - Global Payments (GPN.N), opens new tab said on Wednesday it would sell its payroll business to financial technology firm Acrisure for $1.1 billion, marking the payments company's latest attempt at simplifying its business model. The company intends to use the proceeds from the divestiture to return capital to shareholders. "This transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated," CEO Cameron Bready said in a statement. As part of a three-way deal announced last month, Global Payments will sell its issuer solutions unit, which offers card processing and account services, to FIS (FIS.N), opens new tab for $13.5 billion.
CNA
28-05-2025
- Business
- CNA
Global Payments to sell payroll business to Acrisure for $1.1 billion
Global Payments said on Wednesday it would sell its payroll business to financial technology firm Acrisure for $1.1 billion, marking the payments company's latest attempt at simplifying its business model. The company intends to use the proceeds from the divestiture to return capital to shareholders. "This transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated," CEO Cameron Bready said in a statement. As part of a three-way deal announced last month, Global Payments will sell its issuer solutions unit, which offers card processing and account services, to FIS for $13.5 billion.
