Netspend has already proved fertile ground for new merchant referral relationships among its larger distribution partners. Today we’re excited to announce the close of our merger with Total System Services (TSYS). So we feel very good about obviously where we are. Just the Canada acquisition that sounds pretty cool, what roughly is the size of that? So it's specific to the Unified Commerce Product offering that we've been talking about for probably about a year now, specific to multinational customers on an omnichannel basis. Viewpoint: 2019 mergers and acquisitions impact coming soon to Atlanta office market. First, as we finalize our combined structure, we anticipate reporting based on three operating segments; Merchant Solutions, Issuer Solutions and the newly named Business and Consumer Solutions, which includes the legacy TSYS consumer business and also reflects our expanded strategy for this channel going forward. I think the market, as I said in my prepared remarks, it is absolutely ready for onus domestic and cross-border processing. There is particular series of use cases in restaurants for the Paycard and related services, for Netspend and they also called out the gaming applicability where prepaid and we're not the only ones doing this, but I think prepaid in light of the regulatory changes we've seen in sports betting as well as the brands that we have in the gaming business puts us in a particularly distinctive place on a combined basis with Global Payments and Netspend. We want to make sure that in the next number of months all the stuff that we've laid out internally and externally that we're going to meet and even exceed those expectations. Your line is open. Obviously TSYS brings us I think some very attractive product in terms of the Vital POS solution, the Genius platform and of course ProPay which ties into the second part of your question as it relates to paybacks and enhanced capabilities in that channel in the U.S. market. So I think that's just as further validation. I would say the receptivity for the combined partnership was even better than I had expected back in May, David, when we announced the transaction in the first place. The only thing I would add to that, Dan, is we've already aligned our go-to-market leadership teams across our integrated businesses here in the U.S. market, across our relationship channels in the U.S. market. Thanks, Jeff and good morning everyone. The reason for that, and I will ask Paul to comment on this in a second, the reason for that is TSYS merchant really had two pieces that were very similar to the two pieces at Global Payments. And we also expanded existing contracts with Virgin Money, Nationwide Building Society and Metro Bank. So as I mentioned in the prepared remarks, we were just there as a combined management team including with Troy a couple of weeks ago. And the markets I listed in the prepared remarks, of course, closer to home here in Canada, we just announced Desjardins this morning. Global Payments shares have gained 46% in 2019 to date, while TSYS has gained 47%. We've learned a lot of variable valuable lessons in the process of merging with Heartland and integrating Heartland. So that's the new initiative that's called Spring by Citi. h��U�n�@��}LTѽzm�)@H"5iH5ʃ+�jldLS��3��i�R4���g��2`! So most of the revenue synergies we expect to derive from combining our two businesses are really around those particular cross-selling opportunities, bringing payroll into the existing TSYS base of customers. Your line is open. Our European e-com and omni solutions business again delivered strong growth as we further enhance our differentiated capabilities in Unified Commerce Platform. I think once we feel like our sea legs are there and that we're tracking in the right place, this won't be an issue of capital availability or balance sheet, I think we have those today, instead of saying hey we're in a really good place, we're in a really good trajectory, we feel very good managerially about where we are. And I think as a -- given the size of merchant organization we're operating today, there is room for us to have a wholesale business. We will be transitioning to this methodology in the fourth quarter and will provide all of the components necessary for you to measure performance under both conventions. Now the numbers at this point aren't going to be dramatic, but certainly they are providing a little bit of a nice tailwind in the merchant business within TSYS. The second thing I would say in our own software businesses, we continue to see strong bookings growth across AdvancedMD and ACTIVE as well, SICOM had a very strong quarter and has very strong momentum heading into 2020 having received recently some positive news from one of its largest customers about a rollout of a new product across its base of franchisees in 2020, which we think will be a nice tailwind for that business heading into the year. I think it can be a part of the overall merchant business, again without being a core part of where we're deploying resources trying to grow the business in the future. I wanted to ask about the M&A environment. So it's essentially the same percentage at the combined business as it was for Global stand-alone. Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $959.3 million, an increase of 10.2%. Global payments also had revenue of about $4 billion last year. So Columbus is really at the heart of the company at the end of the day. I'd also say for all of our businesses, not Netspend, we assess all of our businesses continually and that's not specific to any one of them. I'm just wondering, did it -- in addition to other things you mentioned, I mean has it just regained focus coming into this quarter as the deal closed and then you saw a better line of sight. This market-leading business has a full pipeline today and the expanded breadth of our combined 1,300 FY partnerships provide significant untapped opportunities for new issuer and merchant referral relationships. TSYS is a member of the S&P 500 and routinely posts all important information on its website. At present, TSYS’ revenue of $980 million was broken down into 42 percent Issuer Solutions (where accounts on file grew 8.6 percent to 628.2 million), with … While we compile the Q&A roster. Number two, a very smart consumer and then the very sophisticated services. I could not be more excited about the future opportunities for all of our stakeholders. We now expect at least mid-single-digit accretion in 2020, which all else being equal, would imply adjusted earnings per share expectation in the mid-$7 range based on our stand-alone 16% to 18% growth target. I'll maybe let Jeff ask -- respond to you as it relates to the payback conversation that you raised. We feel good enough to increase our target expectations around expense synergies on the whole. This is truly an exciting time to be part of the new Global Payments. By marrying issuer processing with our acquiring capabilities, we can emulate many of the aspects of the virtual closed loop as well as provide strong customer authentication internally, which is now the law of the land across Europe. So it's just about 50%. Stock Advisor launched in February of 2002. These results were achieved while making significant progress on integration, contributing substantially to an increase in our expected revenue and cost savings expectations just a few weeks post close. I'll start. Net income attributable to TSYS common shareholders was $136.4 million, a decrease of 43.7%. Dave, it's Cameron. Good to see the strong results and nice to see the early raise on the TSYS merger synergy targets. And I'm just wondering as we -- you were pretty on the synergy targets I think today, but are you thinking about any opportunity to repurposing the second location, is that contemplated in a cost synergy further down the road or is there some other use for that long-term that we could be thinking about? Netspend now generates $800 million in revenue, has served more than 10 million customers throughout the United States and has established more than 120,000 card distribution sites and 130,000 card reload locations. So I just want to be explicitly clear about that. I'll just add for the merchant business in particular, if you think about its contribution to the total business, it's about 70% of the combined business now and it's roughly 50% technology-enabled and about 50% relationship globally. And as Jeff mentioned, we are already making significant progress on the integration of our two leading pure play payments businesses. And what I would say is our strategy at Global Payments obviously to your point is different than the way TSYS' approach sort of the wholesales/indirect handle historically. We look forward to completing the next phase of our rollout of UCP globally when we go live in the UK over the next few weeks, which we expect will support continued momentum for our Pan-European omnichannel offering. “We now expect adjusted net revenue plus network fees for 2019 to range from $5.60 billion to $5.63 billion, reflecting growth of 41% to 42% over 2018. Good morning. I mean congrats on the Citi partnership, I just -- I guess I just want to understand it, what exactly you're going to be executing there. So certainly as we head into 2020, if the Capital Markets Day favorable and our execution continues or accelerates on the path that it's in, I certainly think we're open for business. In June 2014, CEO Philip W. Tomlinson retired and was replaced with M. Troy Woods, then the president and COO. And so, that's been a nice tailwind as we've been able to bring kind of our teams together. These risks and uncertainties could cause actual results to differ materially. And we're very committed to our team members there as well as the communities in which we live and work. And I think we will look to maintain that business without putting a lot of resources and deploying a lot of resources toward trying to grow it going forward. So we're fully committed to what we said. 2053 0 obj <> endobj Thank you so much. We continue to see decent same-store sales growth in the business, roughly 3.5% for the quarter and obviously new sales and attrition rates remained very constant giving us again good momentum heading into the 2020 timeframe. Find related and similar companies as well as employees by title and much more. So if we think there higher better use for anything that we're doing, we're obviously open minded, we're all very focused on shareholder value. Tien-tsin, as you know, our focus tends to be small-to-medium sized businesses. It adds about 40,000 merchants to our existing base of customers in Canada and obviously gives us a much more significant presence in Quebec, which is an area of the market where Desjardins has been very effective and certainly has a very strong presence. Net revenue (non-GAAP), which excludes reimbursable items, interchange and payment network fees, was $959.3 million, an increase of 10.2%. Your line is open. That's super helpful. We look forward to working with Desjardins and Citi to bring best-in-class solutions to their merchant customers around the globe. Sure. We are thrilled to have successfully finalized our merger with TSYS this quarter, our largest transaction today. Our ability to execute on an accelerated timeline was made possible by the highly complementary nature for our market-leading payments and software technology businesses, the strong alignment of our corporate cultures and the unrivaled expertise of the 24,000 people across our combined organization. Domestically, we expect Netspend's Paycard products to help expand Heartland's payroll offering. TSYS generated revenue of $4.0 billion in 2018, while processing more than 32.3 billion transactions. Yeah. And then the other key trend we are hearing on one of the others is around paybacks. Both Global Payments and TSYS have built industry-leading solutions in payments over our combined 89 years in business. Yeah, Eric, it's Jeff. This reflects a price per share of $119.86 for each share of TSYS common stock, and an approximately 20% premium to TSYS’ unaffected common share price as of the close of business on May 23, 2019. So it's little things here and there and it's probably across all three of the primary areas where we expect to realize synergies from the transaction. 1 Pro forma estimate for 2019 inclusive of $100mm run-rate adj net revenue synergies at a 50% margin and $300mm of run-rate expense synergies; TSYS’ adj net revenue … What should we be thinking in terms of timing? We have the very best employees providing the very best experiences for our customers with the very best technologies in the most attractive global markets. Starting with Desjardins, we have reached an agreement to purchase the Quebec-based banks' existing portfolio of approximately 40,000 merchants and have executed an exclusive referral partnership to provide acquiring solutions to its clients for the next decade. Lastly, our wholesale business declined mid-teens consistent with our expectations for the quarter. Turning now to capital structure, in August, we successfully priced a $3 billion senior unsecured notes offering. With TSYS, we deepen our competitive mode and confirm the value of our ecosystem across each element of our strategy. A quick follow-up on your wholesale business, which I know for legacy Global was a increasingly small part of your business and declining, I know TSYS had a slightly different strategy there. Good afternoon and welcome to the TSYS 2019 First Quarter Earnings Release and Conference Call. I do think we have the slightly different thesis though on why we think that's important strategically. We also did see one area of direct overlap between Global and TSYS which is in the merchant business. Our key leaders from TSYS are now fully integrated into those overall leadership teams in those go-to-market channels. Today we’re excited to announce the close of our merger with Total System Services (TSYS). I think that is differentiated for us. And obviously we expect those to continue to ramp as we head into 2020 and beyond. We also see additional use cases for Paycard in restaurants, one of our largest vertical markets as well as in our gaming business, which is among the largest in North America. I wouldn't want to point to any particular item per se, there is not one significant driver of that overall $25 million increase that we articulated on the call today. Our next question comes from Ramsey El Assal of Barclays. ET. Companies enabling software to do more on their own, which I guess underscores your strategy of buying in, but are you seeing that as well? We pointed out the reasons for that including the Walmart portfolio conversion in Capital One. Inclusive of TSYS from the date of the merger, we now anticipate adjusted operating margin expansion of up to 40 basis points for the full year. TSYS had revenue of $4 billion in 2018, while processing more than 32.3 billion financial transactions. But I would say momentum in both of our businesses is very good. ... Tuesday, September 17, 2019. It's a great question, Dave. In addition, TSYS' Issuer Solutions business recently completed new long-term agreements with the Central Trust Bank in North America and leading retailer Riachuelo in Brazil. I would also say, as I mentioned that PSD2 and strong customer authentication now above the land as of mid-September. And then on the issuer side, you mentioned you got a full pipeline, how about on the merchant front, any comments on pipeline or bookings on the software side, I know there's a lot of activity going on with ISVs and dealers and even on the bank side, as you mentioned. We are now live in the United States in addition to Canada and Asia Pacific and will fully rollout UCP in the UK over the next few weeks. I'll start there, Darrin. Moving to Europe, adjusted net revenue plus network fees for stand-alone Global Payments grew approximately 11% in local currency or 6% on a reported basis as foreign currency exchange rates remained a meaningful headwind during the period. Yeah Ramsey, it's Jeff. endstream endobj 2054 0 obj <>/Metadata 106 0 R/OCProperties<>/OCGs[2070 0 R]>>/Outlines 152 0 R/PageLayout/SinglePage/Pages 2047 0 R/StructTreeRoot 199 0 R/Type/Catalog>> endobj 2055 0 obj <>/Font<>/Properties<>>>/Rotate 0/StructParents 0/Tabs/S/Trans 2077 0 R/Type/Page>> endobj 2056 0 obj <>stream Well we now have the detail, we now have the plans. Dan, it's Jeff. Total company adjusted net revenue plus network fees for the third quarter was $1.31 billion, reflecting growth of 27% versus the prior year. Winnie Smith -- Vice President of Investor Relations. It's Jeff. And as Cameron mentioned, we are expecting further acceleration on that legacy business in Q4. Yeah, Eric, I think you're correct in what you said. Of the -- you delineated for us the three primary areas where you anticipate them, but of the incremental synergies that you're underscoring today, can you give us an attribution of what they relate to with respect to those three buckets? From a timing point of view, I mean we obviously want to make sure, I think the balance sheet is in a very happy place as Cameron alluded, 2.5 times leverage gives us a lot of capability. Revenue had doubled every year since 2016, and Marqeta was finalizing plans to raise at least $250 million at a valuation of about $2 billion, nearly quadrupling its value from two years ago. Dan Perlin -- RBC Capital Markets -- Analyst. Specifically, OpenEdge produced high-teens growth, while our own software portfolio continued to deliver low-double-digit organic growth consistent with our outlined targets. Our U.S. direct distribution businesses again delivered low double-digit normalized organic growth this quarter, led by strength in our integrated and vertical markets business. Multinationals; Match your ambition with our worldwide footprint. Before we begin our question-and-answer session, I'd like to ask everyone to limit their questions to one with one follow-up to accommodate everyone in the queue. I just wanted to clarify a little bit on the TSYS reacceleration in merchant, I mean I know that the company seemed like it was distracted in the second quarter especially around merchant. How should we sort of frame up your M&A opportunity? I would just say just speaking from a strategic point of view, I think our focus on M&A for the combined company really hasn't changed. I'll jump in. And I'm just curious in terms of the harmonization of those two approaches, how are you viewing that business kind of on a go-forward basis? 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