Payment processor Global Payments Inc. (GPN: Quote) said Wednesday that it has agreed to buy payment technology company Accelerated Payment Technologies from private equity firm Great Hill Partners for $413 million in cash. The company expects the transaction to close during the second quarter of its fiscal year 2013.
Accelerated Payment Technologies or APT provides fully-integrated payment solutions for small to medium sized merchants producing about $8 billion in annual card volume.
APT was formerly the payments processing division of CAM Commerce Solutions, Inc. Headquartered in Pleasant Grove, Utah, APT serves 30,000 U.S. businesses and processes billions in transaction volume annually through its payment applications X-Charge, X-Web and XpressLink.
APT markets its products and services primarily through a network of 700 value-added resellers covering 30 different vertical markets.
Paul Garcia, Chairman and CEO of Global Payments said, "APT serves merchants from attractive growth verticals such as the dental, medical, pharmacy, specialty retail, automotive and veterinary markets. We look forward to having their talented management team join Global Payments."
Matthew Vettel, Managing Partner of Great Hill Partners, said, "Global Payments has been a key strategic partner for APT, and we expect the combined businesses will continue to thrive."
Atlanta, Georgia-based Global Payments said its revenue would not materially change, as it currently processes the majority of APT's transactions under its existing Independent Sales Organizations or ISO processing relationship.
For the partial year of fiscal 2013, Global Payments expects the transaction to be dilutive to its earnings per share on a reported basis and about neutral on a cash earnings basis. The company expects the deal to be accretive to its cash earnings thereafter.
The company also anticipates the transaction to be significantly accretive to both North American and total company cash operating margins on an annualized basis.
In late July, Global Payments reported a plunge in fourth-quarter profit to $5.09 million or $0.06 per share from $58.58 million or $0.72 per share in the year-ago period. However, revenues for the quarter grew 15 percent to $597.0 million from $519.8 million in the prior-year quarter.
Boston-based Great Hill Partners manages more than $2.5 billion in capital to finance the expansion, recapitalization or acquisition of growth companies in a wide range of sectors within the business and consumer services, media, communications and software industries.
In Wednesday's regular session, GPN is trading at $42.27, up $0.29 or 0.68 percent on a volume of 600 shares.
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by RTT Staff Writer
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