Latest news with #GlobalPayments
Yahoo
4 days ago
- Business
- Yahoo
GPN to Sell Payroll Business for $1.1Bn, Boosts Focus on Core Operations
Global Payments Inc. GPN recently inked a definitive agreement with the Michigan-based fintech Acrisure to sell its Payroll business. The deal is valued at $1.1 billion and is anticipated to be completed in the second half of 2025, subject to regulatory nod and other customary closing conditions. Its shares gained 1.2% on May 29. Once completed, the after-tax proceeds derived from the divestiture will be utilized to return capital to shareholders. Global Payments and Acrisure have entered into a mutual referral and long-term commercial partnership as part of the recent deal. As a result, GPN will continue offering integrated human capital management and payroll solutions to its merchant clients within its broader commerce enablement platform. The latest move aligns with Global Payments' transformation strategy to streamline business operations and boost shareholder value. The transaction is likely to reflect GPN's endeavor to free up capital for increased investments in growing its core areas of operations and reinforce its position as a top-tier commerce solutions provider serving merchants of all sizes. Global Payments seems to be quite active in undertaking divestitures. In April 2025, the company entered into a definitive agreement to sell its Issuer Solutions business to Fidelity National Information Services, Inc. FIS for $13.5 billion. Concurrently, it will purchase Worldpay from GTCR and FIS for a net purchase price of $22.7 billion. Both transactions are likely to close in the first half of 2026, subject to regulatory nod and fulfillment of other customary closing conditions. The company had also divested the software-as-a-service solutions provider, AdvancedMD, in 2024. It formed part of Global Payments' Merchant Solutions segment. GPN sold the consumer part of its Netspend business along with its gaming business in 2023. Global Payments also seems to be quite active in returning capital to shareholders and plans to utilize the divestiture proceeds of its Payroll business, once completed, bear testament to the same. In October 2024, management approved an increase in its existing share repurchase program and the total authorization amount stood at $2.5 billion. It conducted share repurchases of $446.3 million and paid dividends of $61.1 million in the first quarter of 2025. Its dividend yield of 1.3% remains higher than the industry's average of 0.6%. Shares of Global Payments have dipped 1% in the past month against the industry's 3.9% growth. GPN currently carries a Zacks Rank #3 (Hold). Image Source: Zacks Investment Research Some better-ranked stocks in the Business Services space are Limbach Holdings, Inc. LMB and SPX Technologies, Inc. SPXC. While Limbach currently sports a Zacks Rank #1 (Strong Buy), SPX Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Limbach's earnings surpassed estimates in each of the last four quarters, the average surprise being 91.17%. The Zacks Consensus Estimate for LMB's 2025 earnings indicates a rise of 21.9% while the same for revenues implies an improvement of 18.7% from the respective 2024 figures. The consensus mark for LMB's 2025 earnings has moved 27.2% north in the past 30 days. The bottom line of SPX Technologies beat estimates in each of the trailing four quarters, the average surprise being 8.27%. The Zacks Consensus Estimate for SPXC's 2025 earnings indicates a rise of 13.3% while the same for revenues implies an improvement of 11.7% from the respective 2024 figures. The consensus mark for SPXC's 2025 earnings has moved 2.9% north in the past 30 days. Shares of Limbach and SPX Technologies have gained 29.6% and 11.1%, respectively, in the past month. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Global Payments Inc. (GPN) : Free Stock Analysis Report SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Finextra
5 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.
Bloomberg
5 days ago
- Business
- Bloomberg
Acrisure Goes Big on Payroll With $1.1B Acquisition
Michigan-based Acrisure is agreeing to buy Heartland Payroll Solutions from Global Payments for $1.1 billion. The insurance broker is trying to be a one-stop shop for fintech services. Acrisure CEO and C-Founder Greg Williams joined Bloomberg Open Interest to talk about the deal and what's ahead. (Source: Bloomberg)
Yahoo
6 days ago
- 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
Bloomberg
6 days ago
- Business
- Bloomberg
Global Payments Sells Payroll Unit to Acrisure for $1.1 Billion
Acrisure LLC has agreed to buy Heartland Payroll Solutions from Global Payments Inc. for $1.1 billion, as the insurance broker looks to become more of a one-stop shop for fintech services. Michigan-based Acrisure will finance the deal with cash, having just raised fresh capital to help it with strategic acquisitions, according to Chief Executive Officer Greg Williams.
