Financial tech company Global Payments has a deal in place to acquire payment technology provider EVO Payments. Global will pay close to $4 billion, debt included, according to an announcement made on Monday.
Global agreed to pay $34.00 per share, which represents a 24% premium to EVO shares at the last close on Friday. As a result, EVO stock jumped more than 20 percent in premarket trading and reached $33.16 per share at one point. This is an all-time high since the company went public in 2018.
Following the announcement, Global Payments stock also saw a slight surge, trading at $125.56 per share on Monday morning compared to the $122.36 close on Friday. It’s the highest the company’s shares have been since early June.
The deal is set to benefit Global Payments in multiple ways, most notably helping them expand the business-to-business (B2B) part of their dealings while also opening new markets. EVO has a strong presence in Europe and some Latin American countries, which will significantly boost Global’s reach. It will also help its operation in existing markets.
“Together with EVO, we are positioned to deliver an unparalleled suite of distinctive software and payment solutions to our combined 4.5 million merchant locations and more than 1,500 financial institutions worldwide,” said Global’s CEO Cameron Bready.