Global Payments completes $1.1 billion sale of Payroll business to Acrisure

ATLANTA - Global Payments Inc. (NYSE:GPN) announced Wednesday it has completed the divestiture of its Payroll business to Acrisure for $1.1 billion, continuing the company’s strategic transformation efforts. According to InvestingPro analysis, Global Payments currently trades at a P/E ratio of 13.9x and shows strong financial health with an overall "GOOD" rating based on comprehensive metrics.

The transaction is part of a broader initiative by Global Payments to streamline its operations. The company previously sold AdvancedMD in December 2024 and has announced plans to divest its Issuer Solutions business and acquire Worldpay.

"Closing the sale of our Payroll business is another important step in refocusing our strategy and simplifying our business," said Cameron Bready, chief executive officer of Global Payments, according to the company’s press release.

Global Payments has already deployed $500 million from the transaction proceeds toward an accelerated share repurchase program announced in August. The company stated this activity is in addition to its targeted $7.5 billion in capital returns planned between 2025 and 2027. InvestingPro data reveals management’s commitment to shareholder returns, with the company maintaining dividend payments for 25 consecutive years and demonstrating a robust free cash flow yield of 15%.

The timing of the divestiture is expected to create "a modest headwind to reported adjusted net revenue growth for the merchant segment in the third quarter and roughly 100 basis point headwind for the full year," said Josh Whipple, chief financial officer of Global Payments.

The company indicated these strategic moves are designed to position Global Payments as a focused commerce solutions provider for merchants across all size categories.

Global Payments, headquartered in Georgia, is a Fortune 500 company and S&P 500 member with approximately 27,000 employees operating across 38 countries.

In other recent news, Global Payments Inc. reported its second-quarter earnings for 2025, achieving an earnings per share (EPS) of $3.10, which exceeded analysts’ forecast of $3.05. Despite this earnings beat, the company’s adjusted net revenue grew by 5% on a constant currency basis to $2.36 billion, which was below expectations, resulting in a revenue surprise of -16.95%. Additionally, Global Payments has announced the appointment of Patricia Watson and Archana Deskus as independent directors to its Board, as part of an agreement with Elliott Investment Management. The company will establish a new Integration Committee to oversee the integration of Worldpay following its pending acquisition. Meanwhile, the UK Competition and Markets Authority has initiated a Phase 1 inquiry into the acquisition to assess potential anticompetitive concerns. In other developments, Global Payments launched its Genius solution for enterprise customers, offering a unified commerce platform for various service environments. Analyst firm TD Cowen has raised its price target on the company to $92.00 from $84.00, maintaining a Hold rating. Keefe, Bruyette & Woods reiterated its Market Perform rating and $87.00 price target amid these developments.

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