- Total payment revenue in the world continues to grow.
- In 2019 alone, global payment revenue totaled $2 trillion.
- The companies that manage to position themselves better in this segment will be the ones that lead the exponential growth that is expected for the coming years, especially with the accelerated digitization of emerging countries.
The payment market is getting faster and offers greater convenience to users.
But also much more competitive.
In this context, we must analyze the latest development: Global Payments confirmed this Monday, August 1, that it will buy from your competition EVO Payments, for almost 4 billion dollars.
The amount, as reported, includes the debt.
The purpose of Global Payments is expand its presence in the business of payments between merchants.
The modality business to business (B2B) is the strongest of the company that will now be taken over by the US giant based in Georgia.
The agreement will also give you access to Global Payments to new markets. Among the most relevant are Germany, Poland and Greece.
will also mean the landing of Global Payments in Chile.
The $34-per-share offer carries a 25 percent premium relative to EVO’s close on the stock market last Friday.
As announced by the companies, it is speculated that the agreement will be completed in the first quarter of 2023.
Global Payments He also said that he will receive an investment of 1,500 million dollars from the private capital company Silver Lake.
The official statement of Global Payments.
Global Payments acquires EVO: the goal, B2B payments
In parallel to the novelty of the purchase of EVO, Global Payments announced on Monday the results of the company’s second fiscal quarter ended June 30.
According to the financial report, the company’s total income in the quarter was 2,280 million dollars, above the 2,140 million that had been obtained in the same period of 2021.
Earnings, meanwhile, were not satisfactory. Earnings per share were down $2.42, compared to $0.89 per share earned in the second quarter of 2021.
The operating margin, meanwhile, collapsed 23 percent compared to a positive 17 percent a year earlier.
The expectation for 2022 is that Global Payments will have net income in a range between 8,480 million and 8,550 million dollars, which would reflect a growth of 10.5 percent compared to 2021.
It also expects a 17 percent to 20 percent improvement in earnings by the end of 2022.
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