Paytech firm Global Payments has signed a definitive agreement to sell its payroll business, Heartland Payroll Solutions to fintech entity Acrisure for $1.1bn.
The divestiture is part of Global Payments’ strategy to streamline its operations and focus on being a “pure play” commerce solutions provider.
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This move will see Heartland Payroll, which serves over 50,000 clients with payroll and human capital management (HCM) solutions, rebranded post-closure.
The deal is anticipated to conclude in the second half of 2025, contingent on regulatory approvals and customary closing conditions.
Alongside the sale, Global Payments formed a mutual referral agreement and a long-term commercial partnership with Acrisure, allowing it to continue offering integrated HCM and payroll solutions to its merchants as part of its suite of commerce enablement solutions..
Global Payments plans to utilise the after-tax proceeds from the sale to return capital to shareholders while maintaining leverage neutrality.
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By GlobalDataGlobal Payments CEO Cameron Bready said: “I am pleased with the progress we are making with our transformation program as we move aggressively to simplify our business and enhance value for shareholders. This transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated, while also positioning the payroll business to benefit from greater scale and investment moving forward.”
Vince Lombardo, president of Global Payments North America merchant solutions, will transition to Acrisure as CEO of Heartland Payroll.
Acrisure expects the transaction to enhance its current payroll and HCM capabilities and become a leading fintech solutions provider for small and medium-sized businesses.
Acrisure co-founder, chairman and CEO Greg Williams said: “This significant acquisition accelerates our successful transformation into a fully scaled and diversified fintech platform.
“We’re incredibly excited about partnering with the Heartland Payroll team and look forward to growing this business together.”
This deal comes after Global Payments recently agreed to acquire Worldpay from private equity firm GTCR and fintech company FIS for a total value of $24.25bn and divest its Issuer Solutions business to FIS for $13.5bn.
