Global Payments has reached a deal to begin an acquisition of a unit of ACTIVE Network from Vista Equity Partners, paying $1.2 billion in cash and stock.
ACTIVE Network is billed as a cloud-based enterprise software provider, including online payment technologies, and its products are used by event organizers in the health and fitness realms, reported CBS Marketwatch. Separately, in a press release announcing the news, the companies said that Vista Equity Partners will retain its interest in the outdoors division of ACTIVE Network.
The acquisition is expected to close in the fourth quarter of this year, with the offer price split at $600 million in cash and $600 million in stock. The cash will come from, in part, an existing credit facility.
In the statement between Global Payments and Vista, Jeff Sloan, Global’s CEO, said that “ACTIVE Network aligns perfectly with our technology-enabled, software-driven strategy and complements our existing businesses well … We are adding an enterprise software business operating in two new vertical markets that are highly fragmented and underpenetrated with attractive growth fundamentals.”
The CEO continued that “we also are delighted to enter into a strategic partnership with Vista Equity Partners to provide payment technology expertise to their portfolio of companies. This represents a unique and exciting opportunity to integrate our distinctive payment technologies with a number of leading enterprise software companies to enhance their solutions and drive further market share gains.”
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