Ga. firm paying 4.3B for Heartland Payment Systems

Princeton-based Heartland Payment Systems Inc. is being purchased by a fellow payment company in a deal valued at $4.3 billion, the two firms announced Wednesday.Global Payments Inc., based in Atlanta, is paying $100 per Heartland share in cash and stock under a definitive agreement, they said in a news release. Heartland shareholders will receive 0.6687 of a share of Global Payments and $53.28 in cash for each share of Heartland stock they own. In the end, current Global Payments shareholders will own approximately 84 percent of the combined company.

“The combination of Global Payments and Heartland will be transformative for the worldwide payments industry,” Robert O. Carr, Heartland chairman and CEO, said in a prepared statement. “Under (Global Payments CEO Jeffrey S. Sloan’s) leadership, I believe the combination of our companies will become the most valuable payments company on the planet.

“Heartland is excited to team with a truly international company. In the U.S., Heartland will continue to operate under its brand and under its business model of fair dealing — with the Merchant Bill of Rights and the Sales Professional Bill of Rights guiding the way to future growth and innovation.”

The combined company will provide payment solutions to nearly 2.5 million merchants around the world, the companies said, with expected global revenue exceeding $3 billion and earnings exceeding $1 billion per year.

“This partnership with Heartland marks a major milestone for our company, significantly enhancing our direct presence in our largest market and transforming Global Payments into the leading provider of integrated payments technology solutions in the world,” Sloan said in a statement. “The combination of strong businesses and cultures in high-growth markets will generate exceptional opportunities for our employees, customers, partners and shareholders worldwide.”

The transaction, which expected to close in Global Payments’ fiscal fourth quarter, is subject to customary conditions and regulatory approvals, as well as approval by Heartland shareholders. Both boards of directors have unanimously approved the deal.