Global Payments to buy fintech company EVO in a $4 billion deal to expand its geographic footprint into new markets

Global Payments, an Atlanta-based provider of payment technology and software solutions, announced it has reached an agreement to acquire a smaller rival EVO Payments in a deal valued at nearly $4 billion including debt.

The announcement comes just a year after Global Payments acquired residential San Diego-based real estate tech startup Zego from Vista Equity Partners in an all-cash transaction valued at $925 million, inclusive of a tax asset.

The acquisition will enable Global Payments to expand its geographic footprint into attractive new geographies such as Poland, Germany, Chile, and upon closing, Greece, as well as enhance its scale in existing markets, including the United States, Canada, Mexico, Spain, Ireland, and the United Kingdom, the company said in a statement.

The transaction will significantly increase Global Payments’ target addressable markets as the fintech firm seeks to expand its footprint in the business-to-business (B2B) space.

“The acquisition of EVO is highly complementary to our technology-enabled strategy and provides meaningful opportunities to increase scale in our business globally,” said Cameron Bready, President and Chief Operating Officer, Global Payments. “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.”

The acquisition will also add leading accounts receivable automation software capabilities that complement Global Payments’ existing B2B and accounts payable offerings. Further, EVO will bring an array of key technology partners and proprietary integrations, including with the most widely used ERP software providers.

“Joining EVO and Global Payments will unite highly complementary portfolios of technology-enabled products and partnerships to create an even stronger organization serving a broader customer base,” added Jim Kelly, Chief Executive Officer, EVO. “Over the last decade, the EVO team has worked diligently to advance our innovative solutions, strengthen the service we provide to our bank and technology-enabled partners, and grow our global footprint. This transaction is an achievement for our company, and we believe it delivers compelling value to our shareholders and accelerates our growth opportunities.”

Founded in 1989 by Ray Sidhom, Chairman, and Jeff Rosenblatt, Executive Vice Chairman, in Melville, New York, the Atlanta, Georgia-based EVO provides payment solutions in over 150 currencies and 50 markets around the globe. The company also has over 2,400 employees serving more than 550,000 merchants around the world.