Global Payments has sold its medical software unit, AdvancedMD, to investment firm Francisco Partners for $1.13 billion. This decision aligns with the company's strategy to focus on its core payment processing business. The sale is expected to close in the fourth quarter.
AdvancedMD specializes in providing payment solutions and software services to independent physicians and small to medium-sized healthcare facilities in the US.
The divestiture of AdvancedMD is part of Global Payments' broader initiative to enhance shareholder returns and simplify its business model. The sale reflects the trend among fintech firms to concentrate on their primary services in order to remain competitive.
The proceeds from the sale will be used to enhance shareholder returns, and the company has also announced a $600 million accelerated stock buyback plan. The market's reaction to the sale has been a nearly 3% decline in Global Payments' shares in pre-market trading.
The partnership with Francisco Partners suggests potential growth and innovation in the medical software sector.
Overall, the sale of AdvancedMD is a strategic move by Global Payments to refine its business strategy and enhance shareholder value.