After much speculation, payments companies TSYS and Global Payments announced this week that they plan to merge in a $21.5 billion deal. 

The companies touted their positions in the payments industry’s hottest trending spaces, highlighting their combined presence in vertical markets as well as their integrated payments and payment facilitator capabilities in their announcement

Certainly, neither company is a stranger to the payment facilitator space. TSYS operates a payment facilitator platform and other PF services through its ownership of ProPay. In 2017, it acquired Cayan, an integrated payments technology provider. 

For its part, Global Payments’ OpenEdge platform delivers integrated payments to software companies and in 2017, the company acquired the communities and sports divisions of ISV ACTIVE Network from investment firm Vista Equity Partners.

“The combination of Global Payments and TSYS establishes the leading pure play payments technology company with unparalleled vertical market and payment software capabilities and ecommerce and omnichannel solutions, operating at scale in fast growing markets globally,” Jeff Sloan, CEO of Global Payments, said in a press release. 

“This transformative partnership accelerates our technology-enabled, software-driven payments strategy and provides exposure into attractive and complementary businesses, while enhancing our financial strength and flexibility.” 

The new entity will be called Global Payments, with headquarters in both Atlanta and Columbus, Ga. The companies said they expect the combination to generate about $8.6 billion in annual adjusted net revenue plus network fees this year, processing more than 50 billion transactions annually and serving nearly 3.5 million small to medium-sized business clients in 38 countries physically and more than 100 countries virtually.

“In this exciting merger of equals, our new company will truly be a payments powerhouse that is perfectly poised to lead the industry in delivering merchant, issuer and consumer payments technology, solutions and service to our customers,” M. Troy Woods, chairman, president and CEO of TSYS, said.

“Our companies share common values, a strong culture of putting people first, and a relentless commitment to doing the right thing, making this combination the perfect fit. The entire TSYS team is proud to link arms with Global Payments, and we look forward to leading the market as the preeminent payment solutions provider.”

This year’s previous megamergers between First Data / Fiserv and Worldpay / FIS have led industry insiders to speculate about possible deals for these two companies. A pending agreement between the two was reported by Bloomberg last week. 

The companies expect the transaction to close in the fourth quarter of this year.