Payment processor company
Heartland Payment Systems
) recently announced the acquisition of Ovation Payroll - a
U.S-based payroll outsourcing company with a customer base of
nearly 10,000 in 48 states - for an undisclosed amount.
GLOBAL PAYMENTS (GPN): Free Stock Analysis
HEARTLAND PAYMT (HPY): Free Stock Analysis
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With this acquisition, Heartland will gain operational synergies
and look to fulfil clients' requirement of superior services and
product offerings. The company expects the acquisition of Ovation
Payroll to be beneficial in the long term, enabling it to reach
new heights with respect to ongoing services and portfolio
Post-acquisition, Heartland's payroll business would be augmented
with additional know-how from veteran players in the payroll
industry, coupled with a highly developed Affinity Partner
network, which could eventually lead to strong sales. The
consolidated business will serve more than 22,000 clients with an
expanded management team and highly skilled sales force, thereby
facilitating growth. Ovation Payroll will further provide
Heartland with a distribution network to gain access in new
markets, which in turn would pave its way to become the
industry's only all-inclusive payroll provider. This would also
help merchants to save money and attain all services under a
single roof with an enhanced payroll service platform.
The transaction is a win-win situation for both the companies. By
integrating its services, technology and sales teams with
Heartland, Ovation Payroll will be able to contend with the most
competitive payroll solutions in the market.
Headquartered in Princeton, New Jersey Heartland is the
sixth largest bankcard payment processor that offers credit,
debit and prepaid card services across the US and Canada. The
company provides loyalty marketing, technical business solutions
and services to more than 250,000 organizations.
Heartland currently has a Zacks #1 Rank (short-term Strong Buy)
and a long-term Outperform recommendation. One of its
Global Payments Inc
) carries a Zacks #3 Rank (short-term Hold).