Global Payments Inc. (NYSE: GPN), a provider of payment tech and software services, has entered an agreement to acquire MineralTree, a provider of accounts payable automation and B2B payments solutions, from an investor group that’s led by Great Hill Partners, .406 Ventures and Eight Roads Ventures.
MineralTree’s software-as-a-service (SaaS) offerings have been designed to automate various procurement processes, such as invoice capture, coding and approval, and support digital cards and integrated payments methods.
In combination with Global Payments’ B2B payments services, including leadership in commercial payments, local and global acquiring, payroll, data and analytics, access to non-card based rails and virtual card provisioning, MineralTree’s Cloud-powered solutions expand Global Payments’ addressable markets.
They offer considerable incremental avenues for further growth in an attractive tech market. Global Payments will also offer key advantages for purchasers, suppliers and workers via the creation of new online or virtual networks, strengthening its competitiveness by expanding the firm’s marketplaces and ecosystems.
Jeff Sloan, CEO at Global Payments, stated:
“B2B reinforces each of the legs of our strategic stool, including software primacy, a leading ecommerce franchise and an unmatched presence in many of the most attractive markets worldwide. Post our merger with TSYS in 2019, we have many of the elements of a successful B2B offering. The addition of MineralTree’s digitized payables solutions enhances our B2B product suite and expands our opportunity set in one of the largest and most underpenetrated markets in software and payments. We intend to scale our combined B2B initiatives more quickly by leveraging our extensive distribution channels and leading cloud centric technologies globally.”
Under the current terms of the acquisition deal, Global Payments would acquire MineralTree for $500 million in cash.
Global Payments will be financing the transaction with its credit facility and cash on hand. The deal, which is currently subject to closing conditions and regulatory clearance, is set to be finalzied during Q4 2021.