Global Payments said on Wednesday it would sell its payroll division, Heartland Payroll Solutions, to financial technology firm Acrisure for $1.1 billion, marking the payments company’s latest attempt at simplifying its business.
The Atlanta, Georgia-based company has been divesting non-core assets to position itself as a pure-play payments processor for merchants.
It sold medical software business AdvancedMD to investment firm Francisco Partners for $1.13 billion in 2024 and last month decided to sell its business that offers card processing and account services to FIS for $13.5 billion in a three-way deal.
At its investor day last year, the company revealed plans to divest non-core businesses, which generate $500 million to $600 million in revenue, over the next two years.
The latest divestiture likely puts Global Payments to achieve that target, TD Cowen analysts said, adding that the payroll business was generating $250 million to $300 million.
Heartland Payroll, founded in 1997, caters to more than 50,000 clients, including Marathon Petroleum and Burger King.
“This (latest) transaction further sharpens our strategic focus and allows us to amplify investment in the markets and solutions where we are most differentiated,” said Global Payments CEO Cameron Bready.
The company will use the transaction proceeds to return capital to shareholders. The deal is expected to close in the second half of 2025.
“There is still a lot left to 2025, but we do see growing potential that a bull case eventually can emerge for Global Payments in 2026 based on where the stock’s currently trading and the moves in recent months,” said Seaport analyst Jeff Cantwell.
Shares of Global Payments have dropped 32 per cent so far this year.
For Acrisure, the deal is likely to boost its payroll offerings as the Michigan-based company expands beyond core insurance brokerage business.
