Global Payments to acquire Accelerated Payment Technologies

Global Payments announced an agreement to acquire Accelerated Payment Technologies. Under the terms of the agreement and pending regulatory approvals and customary closing conditions, Global Payments will pay $413M in cash to acquire APT from Great Hill Partners. The transaction is expected to close during Global Payments' second fiscal quarter 2013. Global Payments currently processes the majority of APT's transactions under its existing ISO processing relationship and, as a result, Global Payments' revenue will not materially change. For the partial year of fiscal 2013, the company expects the transaction to be dilutive to fiscal 2013 earnings per share on a GAAP basis and about neutral on a cash earnings basis and accretive to cash earnings thereafter. Additionally, the company expects the transaction to be significantly accretive to both North American and total company cash operating margins on an annualized basis.