Global Payments Inc. announced that it has closed a transaction with
Canadian Imperial Bank
of Commerce, originally announced on November 9, 2000. Global has
acquired certain net assets of the merchant acquiring business of CIBC and has
formed a ten-year marketing alliance with CIBC to offer VISA credit and debit
card payment products and services to merchants in Canada. The acquisition
and the related marketing alliance significantly broaden Global’s scope and
presence in North America and provide customers served by CIBC’s merchant
acquiring business with an array of additional payment solutions. The
combined operations of Global and CIBC’s Canadian business include processing
2.4 billion transactions annually from approximately 915,000 merchant
locations in North America. Annual revenue from CIBC’s Canadian business was
$92.0 million for the year ended October 31, 2000.
Under the terms of the purchase agreement, Global has issued 9,764,623
shares of common stock to CIBC, providing CIBC with a 26.25% ownership
position in Global Payments.
“The commencement of this partnership is an exciting milestone for Global
Payments,” said President and CEO Paul R. Garcia. “We enthusiastically
anticipate the opportunities this relationship affords all of our
constituencies,” he said.
David Marshall, Vice Chairman of CIBC, said, “We are very pleased to be
working with Global Payments, and we are convinced that our alliance will
yield numerous benefits for our North American customer base.”
Global Payments Inc. is a leading provider of electronic transaction
processing services to merchants, Independent Sales Organizations (ISOs),
financial institutions, government agencies and multi-national corporations.
Global Payments offers a comprehensive line of payment solutions, including
credit and debit cards, business-to-business purchasing cards, gift cards,
check guarantee, check verification and recovery, terminal management and
funds transfer services.