Global Payments acquires HSBC stake in joint venture

13 June 2009

Atlanta-based, Global Payments Inc has acquired HSBC Bank plc's remaining 49-per cent interest in its merchant services joint venture for $307.7 million in cash.

The company started the venture jointly with the HSBC Merchant Services in the UK in June last year. It paid HSBC $439 million to get the 51-per cent majority ownership.

HSBC will now extend till 2019 the marketing alliance that allows customers the joint venture services for payment processing in the UK. The bank will provide merchant referrals and bank sponsorship to Global Payments until June 2019.

According to Paul R Garcia, chairman, president and CEO of Global Payments, the company's performance in the UK this year had provided a strong foundation for long-term growth as it continued to offer a wide range of high-value payment solutions and world-class service to merchants. He added that the transaction demonstrated the strength of its relationship with HSBC, as the partnership in UK evolved from a joint venture to a marketing alliance.

He said the company looked forward to continuing and extending the successful worldwide relationship with HSBC.

The company's shares closed at $37.45 Thursday on the New York Stock Exchange.