NEW YORK (The Deal) -- Transaction processor Global Payments (GPN) said Friday it would acquire Payment Processing in a $420 million cash deal that would expand the buyer's reach deeper into small and mid-sized businesses.
Newark, Calif.-based Payment Processing, or PayPros, is a provider of payment solutions to 58,000 U.S. merchants. The company, in business since 1995, is expected to generate about $100 million in revenue in 2013.
Global Payments offers processing services for credit and debit cards, business-to-businesses purchasing cards, gift cards, electronic check conversion and terminal management. The company generated Ebitda of $516.8 million on sales of $2.46 billion in the twelve months ending Nov. 30, 2013.
The deal continues a push by Atlanta-based Global Payments to expand its reach into new markets and smaller businesses. The buyer said that PayPros would complement its Accelerated Payment Technologies unit, which was acquired in October 2012 for $413 million.
"Our acquisition of PayPros will expand our direct distribution, add new vertical markets, accelerate growth in our largest geography and further enhance our existing integrated solutions business with the addition of PayPros' talented team," said Global Payments CEO Jeffrey S. Sloan.
Payment processing and technology is an area of increasing interest, as tech titans including Apple (AAPL) and Google (GOOG) along with wireless providers and others attempt to transform a new generation of smartphones into virtual wallets that might one day replace credit cards.
Elsewhere, eBay (EBAY) in September committed $800 million to acquire Braintree Payment Solutions, which automates and manages online payments for merchants, to boost its PayPal unit.
PayPros founder and CEO Chuck Smith called the deal "the culmination of nearly two decades of hard work and vision," and said "I am confident that Global Payments will be a fantastic partner for our customers and employees."