Global Payment Gains Ground in UK

Global Payments Inc. (GPN - Snapshot Report) bought out the remaining 49% stake in its one-year old merchant services joint venture from HSBC Bank Plc. (HBC - Analyst Report) for $307.7 million.

The acquisition of the online card processing unit that serves British business clients is expected to hit the Atlanta, Georgia-based company’s earnings by fiscal 2010. Global Payments had acquired majority rights in the joint venture for $439 million last June to expand its payment processing services in the UK.

“Our performance in the United Kingdom this year has provided a strong foundation for long-term growth, as we continue to provide a wide range of high-value payment solutions and world-class service to merchants,” Chief Executive Paul R. Garcia said.

Under terms of the deal, HSBC will extend its exclusive marketing alliance agreement with Global Payments until June 2019.

Shares of Global Payments were up nearly 3% to $38.55 at noon on the New York Stock Exchange after touching an intraday high of $38.71 earlier in the session.