US-based Global Payments, a payment processing company, is about to close an acquisition deal with Takepayments, a United Kingdom-based payment service provider to retailers, according to a Reuters report.

An Acquisition to Expand Global Reach

Although the companies have yet to make any official announcement on the deal, Reuters cited two anonymous sources to report that with the acquisition deal, Global Payments is aiming to expand its business in foreign markets. It had outbid other interested parties to procure Takepayments, but the transaction details are yet to be finalized.

However, the acquisition deal is expected to value Takepayments more than $250 million. Currently, Grovepoint is the private equity owner of Takepayments, which bought majority stakes of the payments in 2016 for an undisclosed sum.

The UK-based payments company, previously known as Payzone UK, specializes in facilitating card payments to small businesses, offering card machines, point-of-sale systems, and online payment solutions. According to its website, it uses Barclays as the preferred partner to provide services to merchants.

Furthermore, the Companies House filings show that Takepayments has had healthy growth in its business over recent years. The company generated a turnover of £52.7 million in 2022, which increased from £40.8 million a year before.

Dominance of a US Payments Giant

When it comes to payment solutions, Nasdaq-listed Global Payments is a much larger player. The company targets small and medium-sized businesses with several payment solutions, software, and even marketing and analytics tools.

In the quarter ended in September 2023, the US-based company generated $2.48 billion in revenue, while its net income jumped about 25 percent to $361.83 million. In the previous two quarters, its revenue was at $2.45 billion and $2.29 billion, respectively.

Global Payments acquired EVO Payments, a payment technology and acquiring solutions firm, in August 2022 for $4 billion. The strategic deal expanded the presence of the US company in new countries, including Poland, Germany, Chile, and Greece.

Recently, there were rumors of Global Payments being in talks with Shift4 Payments, a provider of end-to-end commerce solutions, for a potential deal. However, Global Payments denied those reports of acquisition talks last December.