ATLANTA, Dec. 20, 2010 /PRNewswire-FirstCall/ -- Global Payments Inc. (NYSE :GPN ), a leading, worldwide provider of electronic transaction processing solutions, announced today that it has completed the formation of a joint venture with "la Caixa", the largest retail bank in Spain, to provide merchant acquiring services to merchants in Spain.
"la Caixa", headquartered in Barcelona and founded over a century ago, is the market leader in merchant acquiring with a 21 percent market share and over 150,000 merchant outlets. "la Caixa" also has the largest consumer banking footprint in Spain with more than 5,000 branches and 10.5 million customers.
Paul R. Garcia, Chairman and Chief Executive Officer of Global Payments said, "We are honored that 'la Caixa' has partnered with Global Payments, and we believe that the bank's market presence, coupled with our singularly focused sales efforts will drive long term growth."
Under the terms of the agreement, Global Payments paid "la Caixa" euro 125 million to acquire a 51 percent majority ownership in the venture using existing cash resources in Europe and debt from its new credit facilities. "la Caixa" retained the remaining 49 percent and contributed its existing merchant acquiring business to the joint venture. In addition, the bank has agreed to a twenty year marketing alliance in which "la Caixa" will refer customers to the joint venture.
The company will provide additional financial details during its earnings call on January 6, 2011, which will be webcast on the company's website at www.globalpaymentsinc.com.
Global Payments Inc. (NYSE :GPN ) is a leading provider of electronic transaction processing services for merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Europe, and the Asia-Pacific region. Global Payments, a Fortune 1000 company, offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management. Visit www.globalpaymentsinc.com for more information about the company and its services.
This announcement may contain certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including revenue and earnings estimates and management's expectations regarding future events and developments, are forward-looking statements and are subject to significant risks and uncertainties. Important factors that may cause actual events or results to differ materially from those anticipated by such forward-looking statements include the following: the effect of current economic conditions in Spain and their anticipated austerity measures on our ability to drive sales and achieve long-term growth in the market; foreign currency risks which become increasingly relevant as we expand internationally; the effect of current worldwide economic conditions, including a decline in the value of the U.S. dollar; and our ability to effectively operate the joint venture and integrate it into our global platform, and other risks detailed in the company's SEC filings, including the most recently filed Form 10-Q or Form 10-K, as applicable. The company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.
SOURCE Global Payments Inc.