Global Payments NYSE:GPN Stock Report

Executive VP & Chief Accounting Officer recently sold US$466k worth of stock

On the 10th of August, David Sheffield sold around 4k shares on-market at roughly US$133 per share. In the last 3 months, there was an even bigger sale from another insider worth US$2.1m. Insiders have been net sellers, collectively disposing of US$2.6m more than they bought in the last 12 months.

Consensus EPS estimates fall by 75%

The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from US$8.40b to US$8.13b. EPS estimate also fell from US$4.50 per share to US$1.13 per share. Net income forecast to grow 1,049% next year vs 16% growth forecast for IT industry in the US. Consensus price target broadly unchanged at US$169. Share price was steady at US$129 over the past week.

Global Payments Inc. (NYSE:GPN) entered into a definitive agreement to acquire EVO Payments, Inc. (NasdaqGM:EVOP) from a group of shareholders for $3.5 billion.

Global Payments Inc. (NYSE:GPN) entered into a definitive agreement to acquire EVO Payments, Inc. (NasdaqGM:EVOP) from a group of shareholders for $3.5 billion on August 1, 2022. As per the terms of the transaction, Global Payments shall acquire EVO in an all-cash transaction for $34 per share in cash in a transaction that represents an enterprise value for EVO of $4 billion. Global Payments expects to finance the acquisition with cash on hand and a committed bank facility. In connection with the agreement, Global Payments obtained commitments for a $4.3 billion, 364-day senior unsecured bridge facility (the "Bridge Facility"). In addition, the Merger Agreement provides that EVO Payments must pay Global Payments a $100 million termination fee in case of termination. The obligations of the parties to consummate the Merger are subject to the satisfaction or waiver of customary closing conditions set forth in the Merger Agreement, including, among others, (i) the adoption of the Merger Agreement by the EVO Payments stockholders, (ii) the expiration or termination of any waiting period applicable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, as well as the receipt of certain additional regulatory approvals outside of the United States, (iii) the absence of any applicable law or order by a court or other governmental authority of competent jurisdiction in effect restraining, enjoining or otherwise prohibiting the Merger, (iv) the absence of a “Material Adverse Effect” (as defined in the Merger Agreement) with respect to EVO Payments, (v) the other party’s representations and warranties being true and correct (subject to certain customary materiality exceptions) and the other party having performed in all material respects its obligations under the Merger Agreement, (vi) the completion of (x) the Exchange and the Conversion and (y) transactions contemplated by the Blueapple Sale Agreement and (vii) the TRA Amendment being in full force and effect (as described in further detail below); all shares of Series A Convertible Preferred Stock shall have been converted into Class A Common Stock. The Merger is not conditioned on Global Payments or any other party obtaining debt financing. The transaction has been unanimously approved by each company’s Board of Directors. Certain investment funds affiliated with Madison Dearborn Partners, LLC and other EVO stockholders have entered into voting agreements pursuant to which they have agreed, among other things, to vote their shares of EVO stock in favor of the transaction, subject to certain conditions. These stockholders currently represent approximately 22% of the voting power of EVO’s stock. The transaction is expected to close no later than the first quarter of 2023. BofA Merrill Lynch and J.P. Morgan Securities LLC are serving as financial advisors to Global Payments and have provided committed financing. Goldman, Sachs & Co., Barclays, Evercore and Greenhill & Co, Inc. have also provided financial advice to Global Payments. Jacob A. Kling of Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Global Payments. Citigroup Global Markets Inc. is serving as financial advisor to EVO and Keith Townsend, Zach Cochran and Robert Leclerc of King & Spalding LLP is serving as EVO’s legal advisor. Citigroup Global Markets Inc. acted as fairness opinion provider to the board of EVOP. Keith Townsend, Zach Cochran and Robert Leclerc of King & Spalding LLP acted as legal advisor to Madison Dearborn Partners, LLC.

Global Payments Inc. (NYSE:GPN) entered into a definitive agreement to acquire EVO Payments, Inc. (NasdaqGM:EVOP) from certain investment funds affiliated with Madison Dearborn Partners, LLC and others for $3.5 billion.