(Reuters) -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 model.
Atlanta, Georgia-based Global Payments has been reviewing its business recently, selling off smaller units to become a pure-play payments processor to clients and improve profitability, which has taken a hit in recent quarters.
Last month, the company announced the sale of its issuer solutions unit, which offers card processing and account services, to FIS for $13.5 billion as part of a three-way deal.
Global Payments had also agreed to sell its medical software business AdvancedMD to investment firm Francisco Partners for $1.13 billion last year.
“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 intends to use the proceeds from the divestiture of the payroll business to return capital to shareholders.
Founded in 1997, Heartland Payroll caters to more than 50,000 clients, including Marathon Petroleum and Burger King, and will be rebranded after the deal closes — expected in the second half of 2025.
Global Payments will partner with Acrisure to continue providing human capital management and payroll offerings to its merchant customers.
The deal also comes when Acrisure is expanding beyond its core insurance brokerage business.
The Grand Rapids, Michigan-based company had raised $2.1 billion at a $32 billion valuation in a Bain Capital-led funding round earlier this month.
“This significant acquisition accelerates our successful transformation into a fully scaled and diversified fintech platform,” said Acrisure CEO Greg Williams.
Goldfinch Partners advised Acrisure on the transaction.
(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
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