Two pure play payments companies agree to combine forces. Global Payments GPN 164.80 +0.03 +0.02% agreed to aquire Total System Services TSS 133.27 -1.29 -0.96% in an all-stock transaction. TSS shareholders will receive $119.86 per share, a 20% premium over it’s May 23rd closing price.
This combination is the third big takeover in the payments industry this year. In January, Fiserv agreed to acquire First Data and in March, Fidelity National Information Services agreed to acquire Worldpay.
Competition from payment kings PayPal and Square are thought to be spurring these deals.