Global Payments Inc. has reached an agreement to buy the payments technology company Ezidebit, which operates in Australia and New Zealand.
Global Payments, of Atlanta, will pay AU$305 million (about $275 million in U.S. dollars) to acquire Ezidebit. The transaction is expected to close during the second quarter of Global Payments' 2015 fiscal year, pending regulatory approvals. Its fiscal year began June 1.
For the partial year, Global Payments forecasts that the merger will contribute approximately $25 million in revenue. Additionally, the deal will be modestly accretive on a cash earnings basis for fiscal 2015.
Ezidebit enables Asia Pacific merchants to process payments through direct debit cards, BPAY and e-commerce. The company focuses on recurring payments for businesses such as childcare and health and fitness.
"The acquisition of Ezidebit aligns well with our worldwide strategy to enter new, attractive payments markets and supports our growth initiatives with a technology-based, direct distribution player," said Jeffrey Sloan, chief executive of Global Payments, in a Sept. 16 press release.
