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Acquisition

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Global Payments purchases remaining 49 percent stake in HSBC Merchant Services JV for USD 307.7 million

Jun 12, 2009
 
Acquiree : Global Payments
Acquirer : HSBC Merchant Services JV
Domain : Payment processing services
Company's Region : North America
Merging Company's Region : Europe
Deal Notes :

Global Payments, US transaction processor has bought the remaining 49 percent stake in the HSBC Merchant Services joint venture based in the U.K., which it had formed with HSBC Bank. For this stake, Global Payments will pay USD 307.7 million in cash. A year earlier, Global Payments had paid USD 439 million in cash to acquire 51 percent interest in the bank’s UK card merchant acquiring business.

As per the current ten-year exclusive marketing alliance agreement, Global Payments can avail the merchant referrals and bank sponsorship provided by the bank. The agreement will be extended till June 2019. The HSBC Merchant Services JV provides payment processing services to merchants in the U.K. and global internet merchants.