Global Payments Inc. said on Monday it would buy smaller peer EVO Payments International for nearly $4 billion including debt, as the fintech firm seeks to expand its footprint in the business-to-business (B2B) space.
Companies such as EVO strive to digitize and streamline B2B payments which are usually more complex than business-to-consumer payments as they involve dealing with several domestic and overseas merchants.
EVO shares, up nearly 20% in premarket trading, would open at a record high if gains hold.
The deal would give Georgia-based Global Payments access to new markets including Poland, Germany, Chile and Greece and also help scale up its business in existing markets such as the United States and Canada, the company said.
EVO has a sizable presence in Europe which accounted for nearly 40% of its revenue in the first three months of this year.
The offer of $34 per share is at a 24% premium to EVO stock’s last close. The deal is expected to close by the first quarter of 2023, the company said.
Global Payments said it would also receive a $1.5 billion investment from private equity firm Silver Lake in the form of convertible notes.