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GPN to Sell Payroll Business for $1.1Bn, Boosts Focus on Core Operations
GPNGlobal Payments(GPN) ZACKS·2025-05-30 17:46

Core Viewpoint - Global Payments Inc. has agreed to sell its Payroll business to Acrisure for 1.1billion,withthedealexpectedtocloseinthesecondhalfof2025,pendingregulatoryapprovalandothercustomaryconditions[1][2].Group1:TransactionDetails−Theafter−taxproceedsfromthedivestiturewillbeusedtoreturncapitaltoshareholders,andGlobalPaymentswillmaintainapartnershipwithAcrisuretoofferintegratedhumancapitalmanagementandpayrollsolutions[2].−ThedivestiturealignswithGlobalPayments′strategytostreamlineoperationsandenhanceshareholdervalue,allowingforincreasedinvestmentsincorebusinessareas[3].Group2:RecentActivityandFuturePlans−GlobalPaymentshasbeenactiveindivestitures,includinga1.1 billion, with the deal expected to close in the second half of 2025, pending regulatory approval and other customary conditions [1][2]. Group 1: Transaction Details - The after-tax proceeds from the divestiture will be used to return capital to shareholders, and Global Payments will maintain a partnership with Acrisure to offer integrated human capital management and payroll solutions [2]. - The divestiture aligns with Global Payments' strategy to streamline operations and enhance shareholder value, allowing for increased investments in core business areas [3]. Group 2: Recent Activity and Future Plans - Global Payments has been active in divestitures, including a 13.5 billion sale of its Issuer Solutions business to Fidelity National Information Services, and a net purchase of Worldpay for 22.7billion,bothexpectedtocloseinthefirsthalfof2026[4].−ThecompanypreviouslydivestedAdvancedMDin2024andpartsofitsNetspendbusinessin2023,indicatingatrendtowardsfocusingoncoreoperations[5].Group3:ShareholderReturns−GlobalPaymentsiscommittedtoreturningcapitaltoshareholders,withasharerepurchaseprogramauthorizedat22.7 billion, both expected to close in the first half of 2026 [4]. - The company previously divested AdvancedMD in 2024 and parts of its Netspend business in 2023, indicating a trend towards focusing on core operations [5]. Group 3: Shareholder Returns - Global Payments is committed to returning capital to shareholders, with a share repurchase program authorized at 2.5 billion, and has repurchased 446.3millioninshareswhilepaying446.3 million in shares while paying 61.1 million in dividends in Q1 2025 [6]. - The company's dividend yield stands at 1.3%, surpassing the industry average of 0.6% [6]. Group 4: Market Performance - Over the past month, Global Payments' shares have decreased by 1%, contrasting with a 3.9% growth in the industry [7].