Global Payments Announced on Tuesday that is planning to buy Heartland Payment Systems, a rival payment processor for $4.3 billion in cash and stock. The two companies’ combined will be the 6th largest U.S. payment acquirer based on card purchase volume and the largest U.S acquirer based on active merchant locations (using March 2015 Nilson data to re-calculate the size of the new company).
Global Payments gets Heartland’s direct sales force focused on selling to higher margin SMB merchants as well as new ISV and Reseller distribution relationships for its OpenEdge Integrated Payments Channel. Global also gains a stronger U.S. presence in restaurant, retail and education verticals.
- The new combined company will need to determine how to avoid channel conflict with Heartland’s POS companies, Xpient, pcAmerica, Dinerware and Liquer POS. OpenEdge has operated with a strict mantra not to compete against the channel in the past. Heartland Payments has had a more blended go-to-market strategy – enabling its direct sales to sell its POS systems while simultaneously developing ISV/Reseller channel.