Global Payments(GPN) - 2025 Q1 - Quarterly Results

Acquisition and Divestiture - Global Payments announced the divestiture of its Issuer Solutions business for $13.5 billion and the acquisition of Worldpay for a net purchase price of$22.7 billion, reflecting an 8.5x adjusted EBITDA multiple for Worldpay[2] - The acquisition will enhance Global Payments' capabilities to serve over 6 million customers and enable approximately 94 billion transactions annually[4] - The acquisition of Worldpay is seen as a strategic move to simplify Global Payments' business model and enhance its financial profile[5] Financial Projections - The combined company is expected to achieve pro forma adjusted net revenue of approximately $12.5 billion and adjusted EBITDA of approximately$6.5 billion, processing $3.7 trillion in payment volume globally[3] - Global Payments expects adjusted earnings per share for Q1 2025 to be$2.69, reflecting a growth of approximately 10% on a constant currency basis[19] - The company reaffirmed its full-year 2025 outlook for adjusted net revenue, adjusted operating margin, and adjusted earnings per share[20] Synergies and Cost Management - The transaction is anticipated to generate annual run-rate cost synergies of $600 million and revenue synergies of at least$200 million over three years post-closing[13] - Global Payments plans to issue $7.7 billion of debt to finance the acquisition, with an expected net leverage of approximately 3.5x at closing[15][17] Regulatory and Closing Conditions - The transaction is expected to close in the first half of 2026, subject to regulatory approvals[18] - The company faces uncertainties related to regulatory approvals and the ability to meet closing conditions for the transaction[29] Risks and Challenges - Risks include potential difficulties in integrating Worldpay's business and realizing anticipated cost savings from the transaction[29] - There are concerns about maintaining key personnel and potential business disruptions resulting from the transaction[29] - The company is exposed to macroeconomic pressures, including inflation and rising interest rates, which could impact future performance[29] - Increased competition in existing markets and challenges in expanding into new markets are significant risks[29] - The company must comply with Visa and Mastercard requirements, which could affect its operations[29] Forward-Looking Statements - Management's expectations regarding future plans and objectives are subject to change pending finalization of Q1 2025 results[29] - Forward-looking statements are based on current estimates and may differ materially from actual results[29] - The company disclaims any obligation to publicly release updates to forward-looking statements, except as required by law[29]