Global Payments Acquires CyberSource’s U.S. Processing Clients
Jan. 9, 2012
Global Payments Inc. has agreed to purchase from Visa the portfolio of 9,000 U.S. e-commerce merchant processing clients the network inherited when it acquired CyberSource in 2010, according to Paul Garcia, Global’s CEO. Garcia said in the company’s 2Q 2012 earnings conference call that the Atlanta-based processor is paying $45 million for the CyberSource portfolio and two additional international portfolios. “This transaction will broaden our U.S. e-commerce presence by adding over 9,000 merchants and it will expand our e-commerce strategy by augmenting our existing U.S. distribution channel,” said Garcia. “We expect this to close during our third fiscal quarter.” Visa had no comment on the pending sale other than to issue a statement saying, “This agreement enables CyberSource to focus on its core business of providing comprehensive payment-management services to merchants.” Visa indicated in the past it purchased CyberSource mainly for the Authorize.net gateway and its anti-fraud business, but the company’s merchant-acquiring portfolios had put Visa in the position of competing with its U.S. acquirer customers.