November 28, 2024 08:52 GMT
TECHNOLOGY: BBG Sources Report On Global Payments Unit Sales
TECHNOLOGY
GPN Baa3/BBB-/BBB
Not a spread mover; note recently updated distribution strategy and comments that leverage will be maintained.
- BBG sources report that Global Payments is exploring the sale of its payroll and Active Network units, as part of a strategic shift toward growth areas.
- They previously announced plans to divest USD 500mn–600mn in annual revenue (FY24 BBG group consensus is USD 9.2bn). This follows the USD 1.1bn announced sale of AdvancedMD to Francisco Partners in October.
- No deal size given. Active Network was acquired for USD 1.2bn in 2017.
- Stated plans for USD 7.5bn in shareholder returns over the coming three years with leverage to be maintained around 3x (currently 3.3x; management indicating low 3x’s by year-end) imply proceeds will go to payouts.
Keep reading...Show less
118 words