Global Payments CEO Says Payroll Sale Enhances Value, Amplifies Core Investments

Global Payments Inc. (NYSE:GPN) shares are trading higher premarket on Wednesday after the company disclosed a deal to sell its Payroll business, Heartland Payroll Solutions, to Acrisure for a total consideration of $1.1 billion.

The sale of its Payroll division marks another move in the company’s broader strategy to streamline operations and focus on becoming a dedicated provider of commerce solutions tailored to merchants across the spectrum.

The company plans to utilize the post-tax proceeds from the sale to return value to shareholders.

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Global Payments has established a mutual referral arrangement and a long-term commercial partnership with Acrisure as part of the deal.

Through this collaboration, Global Payments will continue to offer fully integrated human capital management and payroll services to its merchant clients as a component of its broader commerce enablement platform.

The transaction is anticipated to close in the latter half of 2025, pending regulatory approvals and the fulfillment of standard closing conditions.

Post completion, Heartland Payroll (which will be rebranded) will significantly enhance Acrisure’s existing payroll and Human Capital Management (HCM) capabilities.

Also, this initiative aligns with the strategic transformation plan shared during its Investor Conference in September 2024.

Cameron Bready, CEO of Global Payments, expressed satisfaction with the advancement of their transformation program. He highlighted the aggressive steps taken to streamline operations and boost shareholder value.

Bready further stated that this transaction refines their strategic focus, enabling increased investment in key markets and solutions where the company holds a competitive edge. He also noted that this move positions the payroll business for enhanced scale and future investment.

This month, the company reported first-quarter revenue of $2.205 billion, narrowly beating the consensus estimate of $2.20 billion and adjusted earnings of $2.82 per share, beating estimates of $2.72 billion.

Investors can gain exposure to the stock via Amplify Digital Payments ETF (NYSE:IPAY) and iShares FinTech Active ETF (NYSE:BPAY).

Price Action: GPN shares are trading higher by 2.24% to $75.75 premarket at last check Wednesday.

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