The private equity firm said in a Monday (Feb. 13) press release that it has entered into a definitive agreement to acquire the division and that it will transition Global Payments Gaming Solutions into a stand-alone independent company called Pavilion Payments.
“We are excited about our partnership with the Pavilion Payments team,” Zach Sadek, partner at Parthenon Capital and member of the board of directors of Pavilion, said in the release. “The company’s innovative product portfolio, including the industry’s only true omnichannel payments offering and most successful cashless implementations, position the business to continue to ensure its customers’ success.”
Global Payments CEO Jeff Sloan said Friday (Feb. 10) in an earnings release that the company was selling its Gaming Solutions business for $415 million and that the move is “consistent with our efforts to refine our portfolio to focus on our corporate clients and away from consumer centric businesses.”
Sloan said in the release that the definitive agreement to sell the division followed Global Payments’ divestiture of Netspend’s consumer business, which is on track to close by the end of the first quarter, and its acquisition of payment technology and acquiring solutions firm EVO Payments, which is to close no later than the end of March.
Speaking of EVO Payments, Sloan said in the release: “The transaction will significantly increase our target addressable markets, enhance our leadership in integrated payments worldwide, expand our presence in new and provide further scale in existing faster growth geographies, and augment our business-to-business software and payment solutions.”
Subject to regulatory approvals, the Gaming Solutions transaction is expected to be completed by the end of March, according to Parthenon Capital’s Monday press release.
The new Pavilion Payments will offer its predecessor’s full suite of payments solutions for the gaming industry and will be led by its existing management team, with current President Christopher Justice taking on the additional title of CEO of Pavilion Payments, the release said.
“The transaction positions our business to meet the evolving needs of the gaming industry and capitalize on the growth trends, especially in markets like iGaming,” Justice said in the release. “We are focused on creating unique player experiences for both in-person and online gaming.”