Atlanta-based Global Payments Inc. has agreed to buy the merchant payments business of Canada’s sixth largest financial institution.
The terms of the deal with Quebec-based Desjardins Group were not disclosed; the companies expect the transaction to close next year after receiving regulatory approvals, the companies announced in an Oct. 31 news release.
In addition to 40,000 merchant customers, Global Payments also gained a marketing agreement whereby Desjardins, a federation of credit unions with assets of $310 billion, will exclusively refer merchants to Global Payments for payment processing and technology for at least 10 years.
Desjardins picked Global Payments thanks to its heritage of innovation and “strong reputation in the Canadian market for unparalleled payments expertise,” executives said.
The move comes a month after Global Payments closed a merger with TSYS Inc., another Georgia-based payment processor, in an all-stock deal valued at about $21.5 billion. The deal was the third mega-merger in the payments sector over the last year. The companies justified the transaction in part based on the complementarity of their solutions. TSYS focused more on processing payments for banks issuing credit cards, while Global Payments’ emphasis lay with merchants.
Global Payments shareholders ended up with 52 percent of the combined company, which retained the Global Payments name and said it would operate from “dual headquarters” in Columbus and Atlanta. Globally, the company has 24,000-plus employees and virtual or physical operations in more than 100 countries. Global Payments has its regional headquarters in Toronto.
Canada’s consulate general in Atlanta has aimed over the past year to foster more collaboration between the country’s fintech sector and the city known as “Transaction Alley,” including by sponsoring the FinTech South conference.