Global Payments announced a $21.5 billion deal on Tuesday to acquire rival Total System Services. It’s the latest salvo in the fintech arms race.
The all-stock transaction creates a payments giant serving 3.5 million small-to-medium-sized merchants and 1,300 financial institutions in more than 100 countries.
The marriage of Global Payments and Total System Services, which is also known as TSYS, marks the third big takeover in the payments industry so far this year as companies adapt to an increasingly cashless world.
Analysts have said joining forces could allow the companies to bypass payments networks by routing purchases directly to banking systems.
Global Payments and Total System Services described the deal as a “merger of equals.” However, Global Payments shareholders would own 52% of the new entity, which will retain the Global Payments name.