Key Takeaways:
- 💲 Global Payments selling AdvancedMD to Francisco Partners for $1.13 billion
- 📈 Shares of Global Payments up nearly 4% with announcement of $600 million accelerated stock buyback plan
- 🔍 Focus on core operations and reducing exposure to challenging healthcare market
- 🌍 Global Payments CEO emphasizing focus on areas with potential growth
- 💼 Global Payments reporting a nearly 13% drop in third-quarter profit due to higher costs
- 💻 AdvancedMD provides software services to independent physicians and healthcare facilities in the U.S.
- 🛑 Investment firm Francisco Partners has been acquiring healthcare units from various companies
- 🤝 Moelis & Co advising Francisco, Bank of America advising Global Payments on AdvancedMD deal closing in fourth quarter
The recent announcement of Global Payments selling its medical software business, AdvancedMD, to Francisco Partners for $1.13 billion has led to a surge in the company’s shares by nearly 4%. This strategic move is part of Global Payments’ focus on core operations, aiming to reduce exposure to the challenging healthcare market while emphasizing areas with growth potential, as highlighted by the CEO.
AdvancedMD, a provider of software services to independent physicians and healthcare facilities in the U.S., has attracted the interest of Francisco Partners, known for acquiring healthcare units from various companies in recent years. The deal, set to close in the fourth quarter with advisory from Moelis & Co and Bank of America, is expected to sharpen Global Payments’ focus, generate capital for shareholder returns, and drive long-term value.
Despite reporting a nearly 13% drop in third-quarter profit due to higher costs, Global Payments remains confident in using the proceeds from the sale to reduce debt and invest in organic growth. By divesting its medical billing unit, the company can prioritize its technology-driven payments solutions and further solidify its position in the evolving payments industry landscape.