Global Payments Inc. (NYSE: GPN), one of the largest worldwide providers of payment solutions, and Bank of the Philippine Islands (BPI), a leading commercial bank in the Philippines, announced today an agreement to form a joint venture to provide merchant acquiring and payment services in the Philippines.
BPI is the largest bank in the Philippines based on market capitalization with more than 800 branches. The bank has operated a merchant acquiring business for over 27 years.
"We are delighted to enter into this partnership with BPI in the Philippines, one of our fastest growing markets," said Jeff Sloan, Chief Executive Officer of Global Payments. "This joint venture highlights our strategy to drive accelerating growth by expanding direct distribution in Asia. It will also allow us to add significant merchants to our existing business in the Philippines, further leverage our technological strengths and provide superior product and service offerings to BPI customers in a highly attractive market," Sloan continued.
"This joint venture marks an exciting new phase for the country's merchant acquiring space. There is great growth potential in the payments industry and we look forward to continuing to build our capabilities to enhance the relevance and value we provide," remarked BPI President and CEO Cezar Consing. "We believe that both our shareholders and our customers will be better served by this partnership, which will encourage higher technological and operational efficiencies to deliver better overall customer experience."
Global Payments will contribute its Philippines merchant acquiring assets and cash to the joint venture to secure a majority interest in the partnership. BPI will contribute its existing merchant acquiring business to the joint venture and hold a 49 percent interest. The transaction is expected to close late third quarter or early fourth quarter of fiscal 2015, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.
For fiscal 2015, Global Payments expects this transaction to be immaterial to revenue and earnings per share on a GAAP and cash earnings basis.