Global Payments is approaching agreement to buy Total System Services for around $ 20 billion
Jeffrey Sloan, CEO, Global Payouts
Scott Mlyn | CNBC
Global Payment Technology Company is approaching an agreement to buy Total Total Services Services for around $ 20 billion, in a company expected to be announced. Tuesday tells people who are familiar with the case CNBC.
The people requested anonymity because the calls are confidential.
Total Systems stock skyrocketed after the CNBC report. Early afternoon it was up nearly 1[ads1]4%; The Global Payments share achieved 3.4%.
Global Payments refused to comment, while Total System Services did not respond to a request for comment.
Shares in Columbus, Georgia-based Total System Services, known as TSYS, are up to 23% a year, giving the company a market value of $ 17.6 billion. Atlanta-based global payments have traded up 45% over the same period and have a current market value of $ 23.3 billion.
The merged company plans to refinance. Bank of America will lead the refinancing and advises global payments on the deal. A bank spokesman for America refused to comment.
The agreement would mark the latter in a tension of activity in the payment technology room. Financial technology provider Fiserv announced plans in January to purchase payment processor First Data in a $ 22 billion deal. In March, the fintech group announced Fidelity National Information Services plans to buy Worldpay for about $ 35 billion.
The consolidation comes as established financial corporations seek to compete with new technology players, such as Square and PayPal, which offer technology-driven services. Last year, VC funding for payments and processing increased to a total of $ 4.4 billion – an increase of 46% from the previous year, according to the PitchBook.
Global payments and TSYS have been active acquirers in recent years and want to build in house technology and expand their customer bases.
TSYS bought the small business solution payment company iMobile3 last year and the trading payment company TransFirst in 2016.
Global Payments announced plans to purchase Heartland Payment Systems for around $ 4.3 billion in 2015 and restaurant payment technology company SICOM Systems for $ 415 million in 2018.  Bloomberg reported that Global Payments and Total System Services were negotiating negotiations on Thursday.