Global Payments has reportedly inched closer to acquire credit card processor Total System Services, commonly known as TSYS, for approximately $20bn.

Citing sources familiar with the development, Bloomberg reported that the companies can announce the deal as early as tomorrow.

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The companies, according to the report, also explored other ways to collaborate including the option of setting up a joint venture.

The deal is still not definite and may even fall apart, the undisclosed sources added.

Representatives of Global Payments and Total System Services declined comment on the report.

TSYS, according to its annual report, is the largest third-party processor for credit-card issuers in the US. Last year, it serviced around 40% of the domestic card accounts of both Visa and Mastercard.

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Global Payments is the fifth-biggest merchant acquirer in the US, Bloomberg reported citing a report from the Nilson Report.

Following the report, Global Payments shares rose 4.6% to $154.85 in New York, valuing the company at about $24.3bn.

Shares of TSYS went up to 23% year to date, giving the company a market capitalization of $17.6bn.

The payment industry saw two major acquisitions this year. FIS agreed to buy British payment processor Worldpay in a cash-stock transaction valued at around $43bn in March this year.

In January, Fiserv agreed to acquire payment processor First Data in an all-stock deal worth $22bn.

Furthermore, KBC Bank Ireland renewed its agreement with TSYS for processing of its credit and debit cards in January.