Latest news with #CameronBready
Yahoo
07-08-2025
- Business
- Yahoo
Global Payments mulls more divestitures
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Global Payments may sell additional parts of its business following its announcement earlier this year to purchase the merchant acquirer Worldpay, the company's CEO said during an earnings call with analysts Wednesday. That's because the major $24.25-billion deal has rearranged the company's view of the future. 'We are reevaluating portfolio composition decisions we made ([and shared at the September investor conference] in light of the Worldpay acquisition, and our expected strategic focus and vertical exposure post-closing,' Global Payments CEO Cameron Bready said during the company's second-quarter earnings call. Global Payments acquired two small companies during the second quarter, including a Hong Kong-based digital payments software company and a fraud technology firm focused on the chargeback process, Bready told analysts, without naming the companies. A Global Payments spokesperson didn't immediately respond to a request to identify the companies. Dive Insight: Global Payments is reassessing its options for divestitures following the announcement in April that it would buy Worldpay from the private equity firm GTCR and processor peer Fidelity National Information Services. At the same time, Global Payments said it would sell its issuer business to FIS for $13.5 billion. The Atlanta-based Global Payments, which processes card payments for retailers and restaurants and provides other payments related services, aims to close the Worldpay deal in the first half of next year with integration work getting started already. Some 100 leaders from both two companies met recently to begin crafting their 'integration roadmap,' Bready said during the call. The company has been focused over the past year on unifying its point-of-sale hardware and services worldwide under the Genius brand as part of a broader strategic shift. The unified Genius marketing began during the second quarter. 'Our genius product family is more than simply a marketplace of point solutions — it's a fully integrated and seamless set of capabilities that can be deployed to clients of varying sizes through our modern, scalable, cloud based software,' Bready said during the call. Still, some analysts are skeptical the company will be able to combat rival Fiserv's Clover offering and upstart digital competitors such as Block's Square and Toast. That's despite revisions to the Global Payments salesforce approach as well. 'We are encouraged that Global is moving forward with its software-integrated POS, but we believe innovations will prove too little, too late in an increasingly competitive market,' William Blair analyst told their investment clients in a Wednesday note. In addition to the sale earlier this year of the issuer business, Global Payments entered a May agreement to sell its payroll software business to Acrisure for $1.1 billion. The sales are part of a Global Payments plan to return about $7.5 billion to shareholders through 2027. The effort has been helped along this year by tax cuts provided in President Donald Trump's new tax-and-spending law. 'The one Big, Beautiful Bill Act obviously has tax provisions that improve our cash flows — that's how we're able to increase our overall expectation for share repurchases and capital returns,' Bready said. 'So of that seven-and-half billion dollar number, we expect roughly an incremental half a billion of cash flow benefits coming from the one Big Beautiful Bill Act.' When asked by one analyst for more detail about the potential additional divestures, Bready was coy, saying he didn't want to infringe on the integrity of any future sale process. Nonetheless, he said the Global Payments-Worldpay business would consider its newly combined partners, exposure and market verticals. 'We are assessing whether any of the decisions we made prior to our September investor conference, we would take a different view of now in light of where the business is going,' the CEO said. 'I think it's fair to say that there probably are some incremental things we would choose to do in light of the Worldpay transaction.' The company's second-quarter operating income, taking into account the issuer business sale, slid 10% to $427.2 million as revenue declined 7.6% to $1.96 billion, according to the company's quarterly filing with the Securities and Exchange Commission. Net income for the quarter, including accounting for the transactions, shrunk by about a third to $241.6 million, the filing showed.
Business Wire
06-08-2025
- Business
- Business Wire
Global Payments Reports Second Quarter 2025 Results
ATLANTA--(BUSINESS WIRE)--Global Payments Inc. (NYSE: GPN) today announced results for the second quarter ended June 30, 2025. "We are pleased to have again delivered results in the second quarter modestly ahead of our expectations, while continuing to drive significant positive change in our organization through our transformation program,' said Cameron Bready, CEO. "We are pleased to have again delivered results in the second quarter modestly ahead of our expectations, while continuing to drive significant positive change in our organization through our transformation program,' said Cameron Bready, chief executive officer. "This performance highlights not only the resilience of our business model, but also our team's ability to execute at scale and advance a substantial number of key initiatives while delivering on our business outcomes.' Bready continued, 'The successful launch of Genius this quarter was a critical milestone in our transformation program, and we are delighted with the early momentum we are building. We also completed the rollout of our revamped sales incentive plan across all of our U.S. sales teams as we continue to implement our salesforce of the future initiative. We remain on track to execute much of our transformation agenda during 2025, and have accelerated a number of initiatives to better position us for the integration of Worldpay at close in the first half of 2026. "To that end, we are making solid progress on the acquisition of Worldpay and divestiture of our Issuer Solutions business to accelerate our transformation and unlock value for shareholders. We have initiated all of the required regulatory approval processes for the transactions, and notably cleared antitrust review in the U.S. upon the expiry of the HSR waiting period in July. Further, we have launched integration planning activities, with an emphasis on accelerating growth, enhancing our competitiveness and realizing targeted synergies, all while unifying as one company under a single brand and combining the best talent from both organizations to build the industry's strongest team. We are preparing for a seamless close and our work has further increased our conviction in revenue and expense synergy opportunities we outlined in April.' Bready concluded, 'We are more confident than ever the combined business with Worldpay will meaningfully enhance our financial profile, deliver sustainable performance, and unlock value for our shareholders." Second Quarter 2025 Summary GAAP revenues were $1.96 billion 1, diluted EPS were $0.99, and operating margin was 21.8%. Adjusted net revenues increased 2% (5% constant currency excluding dispositions) to $2.36 billion. Adjusted EPS increased 11% (11% constant currency) to $3.10. Adjusted operating margin expanded 130 basis points to 44.6%. 2025 Outlook 'We are pleased with our financial and operational performance in the second quarter, which was slightly better than our expectations and positions us well for the balance of the year," said Josh Whipple, chief financial officer. Whipple continued, "The company continues to expect constant currency adjusted net revenue growth in the range of 5% to 6%, excluding dispositions, for the full year. We now expect annual adjusted operating margin expansion to be slightly more than 50 basis points, excluding dispositions, and for our constant currency adjusted earnings per share growth to be at the high end of the 10% to 11% range in 2025.' Whipple concluded, 'Our outlook reflects the business' solid forward momentum as we execute on our strategy and transformation agenda and a macro backdrop consistent with the current environment. We remain on track to close the Worldpay acquisition and the sale of our Issuer Solutions business to FIS in the first half of 2026, which will enable the business to accelerate profitability and significantly enhance our long-term capital allocation commitments.' Financial Reporting Considerations for Pending Issuer Solutions Transaction Effective this quarter, the company began accounting for the Issuer Solutions business as discontinued operations as a result of the announced divestiture to Fidelity National Information Services. Until closing, Issuer Solutions will continue to operate as a business of Global Payments; accordingly, our non-GAAP financial measures reflect total company performance. Capital Allocation Global Payments' Board of Directors approved a dividend of $0.25 per share payable on September 26, 2025 to shareholders of record as of September 12, 2025. The company plans to enter into a $500 million accelerated share repurchase plan. Conference Call Global Payments' management will host a live audio webcast today, August 6, 2025, at 8:00 a.m. ET to discuss financial results and business highlights. The audio webcast, along with supplemental financial information, can be accessed via the investor relations page of the company's website at A replay of the audio webcast will be archived on the company's website following the live event. Non-GAAP Financial Measures Global Payments supplements revenues, operating income, operating margin and net income and earnings per share determined in accordance with GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this earnings release to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in the prior year. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the schedules to this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measures. The company is unable to address the probable significance of the unavailable information. About Global Payments Global Payments (NYSE: GPN) helps businesses around the world enable commerce and provide exceptional experiences to their customers. Our payment technology and software solutions enable merchants, issuers and developers to deliver seamless customer experiences, run smarter operations and adapt quickly to change. Because if it has anything to do with commerce, we are already on it. With 27,000 team members across 38 countries, we have the scale and expertise to help businesses grow with confidence. Headquartered in Georgia, Global Payments is a Fortune 500® company and a member of the S&P 500. Learn more at and follow us on X, LinkedIn and Facebook. Forward-Looking Statements Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and geographies in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and assumptions that could significantly affect the financial condition, results of operations, business plans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-looking statements. Accordingly, we cannot guarantee that our plans and expectations will be achieved. Examples of forward-looking statements include, but are not limited to, statements we make regarding our business strategy and means to implement the strategy; measures of future results of operations, such as revenues, expenses, operating margin, income tax rates and earnings per share; other operating metrics such as shares outstanding and capital expenditures; liquidity and deleveraging plans and capital available for allocation, statements we make regarding guidance and projected financial results for the year 2025; the effects of general economic conditions on our business; statements about the strategic rationale and anticipated benefits of acquisitions or dispositions, such as our proposed acquisition of Worldpay and divestiture of our Issuer Solutions business, including future financial and operating results, and the successful integration of our acquisitions; our ability to timely complete the acquisition of Worldpay and divestiture of our Issuer Solutions business, including receiving all required regulatory approvals in connection with the transactions; statements about the completion of anticipated benefits and strategic or operational initiatives; statements regarding our success and timing in developing and introducing new services and expanding our business; and other statements regarding our future financial performance and the company's plans, objectives, expectations and intentions. Statements can generally be identified as forward-looking because they include words such as 'believes,' 'anticipates,' 'expects,' 'intends,' 'plan,' 'forecast,' 'could,' 'should,' 'will,' 'would,' or words of similar meaning. Although we believe that the plans and expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our plans and expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. In addition to factors previously disclosed in Global Payments' reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the occurrence of any event, change or other circumstances that could give rise to the right of one or more of the parties to terminate the transaction agreements for the divestiture of the Company's Issuer Solutions business and the acquisition of Worldpay (collectively, the 'Transaction'); the outcome of any legal proceedings that may be instituted against Worldpay, Global Payments, or its directors; the ability to obtain regulatory approvals and meet other closing conditions for the Transaction on a timely basis or at all, including the risk that regulatory approvals required for the Transaction are not obtained on a timely basis or at all, or are obtained subject to conditions that are not anticipated or that could adversely affect Global Payments following the Transaction or the expected benefits of the Transaction; risks related to the financing in connection with the Transaction; difficulties and delays in integrating the Worldpay business into that of Global Payments, including with respect to implementing controls to prevent a material security breach of any internal systems or to successfully manage credit and fraud risks in business units; failing to fully realize anticipated cost savings and other anticipated benefits of the Transaction when expected or at all, business disruptions from the proposed transaction that will harm Global Payments' or Worldpay's businesses, including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction, including as it relates to Global Payments' or Worldpay's ability to successfully renew existing client contracts on favorable terms or at all and obtain new clients; failing to comply with the applicable requirements of Visa, Mastercard or other payment networks or card schemes or changes in those requirements; the ability of Global Payments or Worldpay to retain and hire key personnel; the diversion of management's attention from ongoing business operations; uncertainty as to the long-term value of the common stock of Global Payments following the Transaction, including the dilution caused by Global Payments' issuance of additional shares of its common stock in connection with the Transaction; the continued availability of capital and financing; the effects of global economic, political, market, health and social events or other conditions; the imposition of tariffs and other trade policies and the resulting impacts on market volatility and global trade; macroeconomic pressures and general uncertainty regarding the overall future economic environment; foreign currency exchange, inflation and rising interest rate risks; the effects of a security breach or operational failure on our business; the ability to maintain Visa and Mastercard registration and financial institution sponsorship; difficulties, increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets; our ability to safeguard our data; risks associated with our indebtedness; the potential effect of climate change including natural disasters; the effects of new or changes in current laws, regulations, credit card association rules or other industry standards on us or our partners and customers, including privacy and cybersecurity laws and regulations; and other events beyond our control, and other factors included in the 'Risk Factors' section in our most recent Annual Report on Form 10-K and in other documents that we file with the SEC, which are available at These cautionary statements qualify all of our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. While we may elect to update or revise forward-looking statements at some time in the future, we specifically disclaim any obligation to publicly release the results of any revisions to our forward-looking statements, except as required by law. Note: nm = not meaningful. Expand SCHEDULE 2 NON-GAAP FINANCIAL MEASURES (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) ---------------------------------------------------------------------------------- See Schedules 6 and 7 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedules 8 and 9 for a reconciliation of adjusted net revenue and adjusted operating income by segment and supplemental non-GAAP information to the most comparable GAAP measure, and Schedule 10 for a discussion of non-GAAP financial measures. All non-GAAP results now include the effect of share-based compensation expense, and prior period non-GAAP results have been recast to reflect this change Expand SCHEDULE 3 SEGMENT INFORMATION (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Expand Six Months Ended June 30, 2025 June 30, 2024 % Change Merchant Solutions $ 3,765,434 $ 3,523,581 $ 3,805,119 $ 3,496,002 (1.0 )% 0.8 % Issuer Solutions — 1,076,182 — 1,042,102 nm 3.3 % Intersegment eliminations — (33,702 ) — (30,044 ) nm (12.2 )% $ 3,765,434 $ 4,566,061 $ 3,805,119 $ 4,508,060 (1.0 )% 1.3 % Operating income (loss): Merchant Solutions $ 1,331,033 $ 1,726,214 $ 1,252,962 $ 1,675,186 6.2 % 3.0 % Issuer Solutions — 511,298 — 488,024 nm 4.8 % Corporate (527,991 ) (250,875 ) (417,983 ) (246,621 ) (26.3 )% (1.7 )% Gain on business disposition 4,260 — — — nm nm $ 807,302 $ 1,986,636 $ 834,979 $ 1,916,589 (3.3 )% 3.7 % Expand ---------------------------------------------------------------------------------- See Schedules 8 and 9 for a reconciliation of adjusted net revenue and adjusted operating income by segment to the most comparable GAAP measures and Schedule 10 for a discussion of non-GAAP financial measures. Note: Amounts may not sum due to rounding. Note: nm = not meaningful. Expand SCHEDULE 4 CONSOLIDATED BALANCE SHEETS (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except share data) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 2,611,662 $ 2,356,434 Accounts receivable, net 864,429 782,306 Settlement processing assets 2,077,445 1,599,390 Prepaid expenses and other current assets 405,279 350,274 Assets held for sale 905,442 — Current assets of discontinued operations 888,730 942,828 Total current assets 7,752,987 6,031,232 Goodwill 16,742,403 16,777,532 Other intangible assets, net 4,380,462 4,527,382 Property and equipment, net 1,414,244 1,400,247 Deferred income taxes 97,479 98,386 Notes receivable 804,480 772,297 Other noncurrent assets 1,862,917 1,845,053 Noncurrent assets of discontinued operations 15,463,538 15,438,126 Total assets $ 48,518,510 $ 46,890,255 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Current liabilities: Settlement lines of credit $ 627,900 $ 503,407 Current portion of long-term debt 1,868,295 1,008,750 Accounts payable and accrued liabilities 2,184,784 2,626,159 Settlement processing obligations 2,691,637 1,518,541 Liabilities held for sale 291,914 — Current liabilities of discontinued operations 518,845 595,857 Total current liabilities 8,183,375 6,252,714 Long-term debt 14,150,983 15,058,675 Deferred income taxes 1,702,310 1,574,232 Other noncurrent liabilities 577,449 543,603 Noncurrent liabilities of discontinued operations 482,804 444,464 Total liabilities 25,096,921 23,873,688 Commitments and contingencies Redeemable noncontrolling interests 171,831 160,623 Equity: Preferred stock, no par value; 5,000,000 shares authorized and none issued — — Common stock, no par value; 400,000,000 shares authorized at June 30, 2025 and December 31, 2024; 242,475,957 shares issued and outstanding at June 30, 2025 and 248,708,899 shares issued and outstanding at December 31, 2024 — — Paid-in capital 17,496,438 18,118,942 Retained earnings 5,200,609 4,774,736 Accumulated other comprehensive loss (103,972 ) (612,992 ) Total Global Payments shareholders' equity 22,593,075 22,280,686 Nonredeemable noncontrolling interests 656,683 575,258 Total equity 23,249,758 22,855,944 Total liabilities, redeemable noncontrolling interests and equity $ 48,518,510 $ 46,890,255 Expand SCHEDULE 5 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income $ 558,870 $ 712,337 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property and equipment 225,105 241,943 Amortization of acquired intangibles 551,074 689,157 Amortization of capitalized contract costs 66,966 68,019 Share-based compensation expense 79,550 83,362 Provision for operating losses and credit losses 41,880 41,026 Noncash lease expense 25,163 29,741 Deferred income taxes 95,584 (184,963 ) Paid-in-kind interest capitalized to principal of notes receivable (38,961 ) (35,868 ) Equity in income of equity method investments, net of tax (38,299 ) (34,748 ) Distributions received on investments 7,512 — Impairment of goodwill 33,225 — Gain on business disposition (4,260 ) — Other, net 19,614 23,023 Changes in operating assets and liabilities, net of the effects of business combinations: Accounts receivable (102,565 ) (29,658 ) Prepaid expenses and other assets (124,058 ) (160,058 ) Accounts payable and other liabilities (23,751 ) (104,899 ) Net cash provided by operating activities 1,372,649 1,338,414 Cash flows from investing activities: Business combinations and other acquisitions, net of cash and restricted cash acquired (205,825 ) (372,662 ) Capital expenditures (279,747 ) (324,657 ) Principal payment received on notes receivable 8,750 — Other, net — 6 Net cash used in investing activities (476,822 ) (697,313 ) Cash flows from financing activities: Changes in funds held for customers (118,967 ) (127,497 ) Changes in settlement processing assets and obligations, net 630,244 (57,718 ) Net borrowings from settlement lines of credit 87,551 55,351 Net borrowings (repayments) from commercial paper notes 797,732 (936,539 ) Proceeds from long-term debt 2,755,112 6,288,994 Repayments of long-term debt (3,769,614 ) (4,430,074 ) Payments of debt issuance costs (40,512 ) (33,056 ) Repurchases of common stock (691,089 ) (900,047 ) Proceeds from stock issued under share-based compensation plans 16,244 25,137 Common stock repurchased - share-based compensation plans (37,372 ) (43,279 ) Distributions to noncontrolling interests (30,095 ) (10,881 ) Proceeds and contributions from noncontrolling interests — 2,116 Payment of deferred and contingent consideration in business combination — (6,390 ) Purchase of capped calls related to issuance of convertible notes — (256,250 ) Dividends paid (121,501 ) (127,042 ) Net cash used in financing activities (522,267 ) (557,175 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 230,353 (53,652 ) Increase in cash, cash equivalents and restricted cash 603,913 30,274 Cash, cash equivalents and restricted cash, beginning of the period 2,735,975 2,256,875 Cash, cash equivalents and restricted cash, end of the period $ 3,339,888 $ 2,287,149 Expand SCHEDULE 6 GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. Net revenue adjustments also included Intersegment eliminations for services provided by discontinued operations to our Merchant Solutions segment. (2) For the three months ended June 30, 2025, earnings adjustments to operating income (inclusive of discontinued operations) included $335.6 million of amortization of acquired intangibles in cost of services (COS) and $176.9 million in selling, general and administrative expenses (SG&A). Adjustments to SG&A included acquisition, integration and separation expenses of $24.4 million, facilities exit charges of $5.1 million, charges for business transformation activities of $109.6 million (including non-cash write-down), modernization charges of $8.4 million, employee termination benefits of $24.5 million, and other items of $4.9 million. Earnings adjustments for the three months ended, June 30, 2025, also include the add back of $140.1 million of depreciation and amortization (D&A) of long-lived assets which is no longer recognized under GAAP once the assets are classified as discontinued operations. For the three months ended June 30, 2025, earnings adjustments to operating income also included a $33.2 million noncash goodwill impairment charge in connection with the classification of our Issuer Solutions business as assets held for sale, and the elimination of a $0.3 million gain on business dispositions. For the three months ended June 30, 2024, earnings adjustments to operating income (inclusive of discontinued operations) included $345.9 million of amortization of acquired intangibles in COS and $88.1 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $55.7 million, employee termination benefits of $10.1 million, and other items of $22.3 million. (3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the three months ended June 30, 2025, income taxes on adjustments include the removal of $202.0 million in tax charges related to business dispositions. See "Non-GAAP Financial Measures" discussion on Schedule 10. Expand ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. Net revenue adjustments also included Intersegment eliminations for services provided by discontinued operations to our Merchant Solutions segment. (2) For the six months ended June 30, 2025, earnings adjustments to operating income (inclusive of discontinued operations) included $664.9 million of amortization of acquired intangibles in COS and $314.3 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $52.8 million, facilities exit charges of $9.8 million, charges for business transformation activities of $175.8 million (including non-cash write-down), modernization charges of $17.8 million, employee termination benefits of $24.6 million, charges related to the resolution of a certain legal matter of $18.3 million, and other items of $15.2 million. Earnings adjustments for the six months ended, June 30, 2025, also include the add back of $140.1 million of D&A of long-lived assets which is no longer recognized under GAAP once the assets are classified as discontinued operations. For the six months ended June 30, 2025, earnings adjustments to operating income also included a $33.2 million noncash goodwill impairment charge in connection with the classification of our Issuer Solutions business as assets held for sale, and the elimination of a $4.3 million gain on business dispositions. For the six months ended June 30, 2024, earnings adjustments to operating income (inclusive of discontinued operations) included $689.2 million of amortization of acquired intangibles in COS and $201.6 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $134.6 million, employee termination benefits of $34.9 million, and other items of $32.1 million. (3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the six months ended June 30, 2025, income taxes on adjustments include the removal of $202.0 million in tax charges related to business dispositions. See "Non-GAAP Financial Measures" discussion on Schedule 10. Expand ------------------------------------------------------------------------------------------ (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. Net revenue adjustments related to Intersegment eliminations represent services provided by discontinued operations to our Merchant Solutions segment. (2) For the three months ended June 30, 2025, earnings adjustments to operating income (inclusive of discontinued operations) included $335.6 million of amortization of acquired intangibles in COS and $176.9 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $24.4 million, facilities exit charges of $5.1 million, charges for business transformation activities of $109.6 million (including non-cash write-down), modernization charges of $8.4 million, employee termination benefits of $24.5 million, and other items of $4.9 million. Earnings adjustments for the three months ended, June 30, 2025, also include the add back of $140.1 million of D&A of long-lived assets which is no longer recognized under GAAP once the assets are classified as discontinued operations. For the three months ended June 30, 2025, earnings adjustments to operating income also included a $33.2 million noncash goodwill impairment charge in connection with the classification of our Issuer Solutions business as assets held for sale, and the elimination of a $0.3 million gain on business dispositions. For the three months ended June 30, 2024, earnings adjustments to operating income (inclusive of discontinued operations) included $345.9 million of amortization of acquired intangibles in COS and $88.1 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $55.7 million, employee termination benefits of $10.1 million, and other items of $22.3 million. See "Non-GAAP Financial Measures" discussion on Schedule 10. Note: Amounts may not sum due to rounding. Expand ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. Net revenue adjustments related to Intersegment eliminations represent services provided by discontinued operations to our Merchant Solutions segment. (2) For the six months ended June 30, 2025, earnings adjustments to operating income (inclusive of discontinued operations) included $664.9 million of amortization of acquired intangibles in COS and $314.3 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $52.8 million, facilities exit charges of $9.8 million, charges for business transformation activities of $175.8 million (including non-cash write-down), modernization charges of $17.8 million, employee termination benefits of $24.6 million, charges related to the resolution of a certain legal matter of $18.3 million, and other items of $15.2 million. Earnings adjustments for the six months ended, June 30, 2025, also include the add back of $140.1 million of D&A of long-lived assets which is no longer recognized under GAAP once the assets are classified as discontinued operations. For the six months ended June 30, 2025, earnings adjustments to operating income also included a $33.2 million noncash goodwill impairment charge in connection with the classification of our Issuer Solutions business as assets held for sale, and the elimination of a $4.3 million gain on business dispositions. For the six months ended June 30, 2024, earnings adjustments to operating income (inclusive of discontinued operations) included $689.2 million of amortization of acquired intangibles in COS and $201.6 million in SG&A. Adjustments to SG&A included acquisition, integration and separation expenses of $134.6 million, employee termination benefits of $34.9 million, and other items of $32.1 million. See "Non-GAAP Financial Measures" discussion on Schedule 10. Note: Amounts may not sum due to rounding. Expand SCHEDULE 10 OUTLOOK SUMMARY (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In millions, except per share data) (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefit to the company. Amounts also included adjustments to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Net revenue adjustments also include the effect of discontinued operations. (2) Adjustments to 2024 GAAP diluted EPS included the removal of 1) software-related contract liability adjustments described above of $0.01, 2) acquisition related amortization expense of $4.13, 3) acquisition, integration, and separation expense of $0.64, 4) charges for business transformation activities of $0.30, 5) employee termination benefits of $0.24, 6) non-cash charges for technology assets that will no longer be utilized under a revised technology architecture development strategy of $0.17, 7) modernization charges of $0.07, 8) non-cash asset write-offs for discontinued initiatives of $0.06, 9) facilities exit charges of $0.04, 10) gain/loss on business dispositions of $(0.83), 11) other income and expense of $(0.05), 12) discrete tax items of $0.04, 13) other items of $0.04, 14) the effect of noncontrolling interests and income taxes, as applicable. Note: nm = not meaningful. Expand NON-GAAP FINANCIAL MEASURES Global Payments supplements revenues, operating income, operating margin and net income, and earnings per share (EPS) determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in the prior year. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income, and EPS determined in accordance with GAAP. The non-GAAP financial measures reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies. Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Adjusted net revenue reflects total company performance, including discontinued operations. Management believes adjusted net revenue more closely reflects the economic benefits to the company's core business and allows for better comparisons with industry peers. Adjusted operating income, adjusted net income and adjusted EPS exclude acquisition-related amortization expense, acquisition, integration, separation and transformation expense, gains or losses on business dispositions, and certain other items specific to each reporting period as more fully described in the accompanying reconciliations in Schedules 6 and 7. The tax rate used in determining the income tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, income taxes on adjustments include the removal of tax charges related to business dispositions. Adjusted operating income reflects total company performance, including discontinued operations. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue.
Finextra
29-05-2025
- 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.
