Research Update: Global Payments Inc. 'BBB-' Rating Affirmed On Planned Acquisition Of EVO Payments; Outlook Stable

Global payment technology solutions provider Global Payments Inc. (GPN) has agreed to acquire EVO Payments Inc. for approximately $4 billion and to sell the consumer assets within its Netspend business for gross proceeds of about $1 billion. The company has also obtained a $1.5 billion strategic investment from Silver Lake in the form of a 7-year 1% senior unsecured convertible notes. We affirmed all of our ratings on GPN, including the 'BBB-' issuer credit rating, reflecting the benefit of further diversification within its merchant business and fast-growing geographies despite the higher leverage initially. The outlook is stable reflecting our expectation that continued healthy transaction volume growth and disciplined expense management will lead to consistently strong free cash flow generation such

...- Global payment technology solutions provider Global Payments Inc. (GPN) has agreed to acquire EVO Payments Inc. for approximately $4 billion and to sell the consumer assets within its Netspend business for gross proceeds of about $1 billion. - The company has also obtained a $1.5 billion strategic investment from Silver Lake in the form of a 7-year 1% senior unsecured convertible notes. - We affirmed all of our ratings on GPN, including the '###-' issuer credit rating, reflecting the benefit of further diversification within its merchant business and fast-growing geographies despite the higher leverage initially. - The outlook is stable reflecting our expectation that continued healthy transaction volume growth and disciplined expense management will lead to consistently strong free cash flow generation such that leverage will be restored within 12 to 24 months after transaction close....

Research Update