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Global Payments, HSBC to launch joint venture

By Associated Press
June 17, 2008 | Comments (0)

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Global Payments Inc., a provider of electronic payment processing services, said Tuesday it will create a joint venture with HSBC Bank PLC.

The new venture, called HSBC Merchant Services, will provide payment processing services to merchants in the United Kingdom and worldwide on the Internet.

Under the agreement, Global Payments will pay HSBC $439 million in cash to acquire a 51 percent stake in the new venture. HSBC will control the remaining 49 percent and contribute its existing merchant acquiring business in the U.K. to the joint venture. HSBC will also refer its customers to the new business.

Global Payments expects the new venture to boost earnings within the first year following the closing of the transaction. The deal is expected to close within two months.

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