The merger between Columbus-based electronic payments company TSYS and Atlanta-based Global Payments is complete, officials for the new venture announced Wednesday.
“We are delighted to announce the completion of this landmark transaction, creating significant opportunities for our customers, partners, employees and shareholders worldwide,” Jeff Sloan, Chief Executive Officer and a board member of Global Payments, said in a statement.
The agreement, billed as an “all-stock merger of equals” valued at roughly $23.6 billion, was first announced in late May. Global Payments shareholders will own 52% of the company, while TSYS shareholders will own 48% of the company. Under terms of the agreement, the combined company will be named Global Payments.
The merger happened a little quicker than anticipated. The transaction was expected to close in the fourth quarter of 2019, said Troy Woods, TSYS’ former President and CEO who now serves as Chairman of the Board for Global Payments.
Other members of the board include five members from Global Payments’ previous board and five members from TSYS’ previous board, according to a news release. The company will have dual headquarters in Columbus and Atlanta.
Woods said Global Payments would still use the TSYS brand name for its issuer services, and the TSYS name is expected to remain on other properties throughout the city.
The new Global Payments aims to save $300 million over the next three years by combining business operations, eliminating duplicate corporate and operational structures and executing other changes.
Roughly 4,800 of TSYS’ 13,000 employees are based in Columbus. About 90 to 95% of those Columbus employees are issuer-related — an area of business that was not performed or staffed by the previous Global Payments firm, Woods said.
“There will be some jobs within the combined company that will be eliminated,” Woods said. “It’s way too early to handicap the details of how many and where they will be.
“It would be a mistake to think that ... any and all affected team members will be TSYS Columbus, Georgia, affected team members. ...It just depends on a lot of circumstances.”
The merger could also bring workers and operations to Columbus, Woods said, but he did not provide any further details.
“It’s just too early to put a big wrapper on all of that,” Woods said. “We’ve got like 50 functional teams ... looking at job responsibilities, functions, synergies, etc. So, it’ll just take some time. Some things will happen faster than others. ...We’ve got a lot of work ahead of us.”
The Atlanta Business Chronicle reported in August that six lawsuits were filed to challenge the Global Payments/TSYS merger. Two separate federal lawsuits filed in the Middle District of Georgia were dismissed in late August. Lawsuits in New York and the Northern District of Georgia have not been terminated, according to court records.
The TSYS-Global Payments merger is the third mega-deal in the payment industry this year. In January, Fiserv announced a $22 billion deal to acquire First Data Corp. In March, Fidelity National Services announced a deal to purchase WorldPay for about $35 billion.
This story will be updated as more information becomes available.