- Global Payments Inc (NYSE: GPN) reported second-quarter FY22 adjusted net revenue growth of 6% year-on-year to $2.06 billion, missing the consensus of $2.07 billion.
- The adjusted operating margin expanded 200 basis points to 43.8%.
- Adjusted EPS of $2.36 beat the consensus of $2.35.
- Global Payments held $1.93 billion in cash and equivalents.
- Dividend: The board approved a dividend of $0.25 per share, payable September 30, 2022, to shareholders of record on September 16, 2022.
- The board authorized an increase of the company's share repurchase program to a total available authorization of $1.5 billion.
- CEO Jeff Sloan said, "Our Merchant and Issuer businesses both exceeded our targets, with our Issuer business delivering significant sequential improvement as expected."
- GPN agreed to acquire EVO Payments, Inc (NASDAQ: EVOP) for $4.0 billion of enterprise value.
- The all-cash transaction of $34.00 per share represents a premium of approximately 24% and 40% to EVOP's last closing price and its 60-day average price, respectively, as of July 29, 2022.
- Silver Lake has committed a $1.5 billion long-term strategic investment in Global Payments in the form of convertible senior notes.
- GPN agreed to sell Netspend's consumer assets to Searchlight Capital and Rev Worldwide for $1.0 billion.
- Outlook: Global Payments raised the FY22 adjusted net revenue outlook from $8.42 billion - $8.50 billion to $8.48 billion - $8.55 billion, above the consensus of $8.41 billion.
- Global Payments increased the adjusted EPS outlook from $9.45 - $9.67 to $9.53 - $9.75, above the consensus of $9.51.
- Price Action: GPN shares traded higher by 3.01% at $126.00 and EVOP up by 20.74% at $33.01 in the premarket on the last check Monday.
Read at Benzinga