Josh Whipple
Senior Executive Vice President and Chief Financial Officer at Global Payments
Thanks, Cameron. We're pleased with our strong financial performance in the second quarter, which exceeded our expectations despite ongoing macro concerns, the exit of our Russian business and incremental headwinds from adverse foreign currency exchange rates. Specifically, we delivered adjusted net revenue of $2.06 billion, an increase of 6% from the prior year and 8% growth on a constant currency basis. Excluding the Netspend consumer assets, which will now be held as available-for-sale, adjusted net revenue grew 11% on a constant currency basis.
Adjusted operating income increased 14% on a constant currency basis and 17% excluding Netspend consumer assets. Adjusted operating margin for the quarter was 43.8%, a 200 basis point improvement from the second quarter of 2021 or approximately 250 basis points, excluding the impact of acquisitions. Excluding the Netspend consumer assets, adjusted operating margin was 45.3%. The net result was adjusted earnings per share of $2.36, an increase of 16% from the prior year or 19% on a constant currency basis.
Taking a closer look at our performance by segment. Merchant Solutions achieved adjusted net revenue of $1.43 billion for the second quarter, an 11% improvement from the prior year or 14% on a constant currency basis. ahead of our expectations despite our exit from our Russian business in the quarter. Notably, we delivered an adjusted operating margin of 50.2% in this segment, an increase of 170 basis points year-on-year. Our combined U.S. payments and payroll and integrated business delivered another strong quarter, led by our integrated channel, which again reported mid-teens growth. We also continue to see strong momentum in our POS software solutions, which grew roughly 40% this quarter, and our HCM and payroll business, which grew 20%. Our worldwide e-commerce and omnichannel business delivered constant currency growth in the mid-teens this quarter, well ahead of the trends reported by the networks, as our Unified Commerce Platform continues to resonate with customers.
To that end, we are excited that we have now expanded our acquiring relationship with Google across UCP to North America following the success of our launch in Asia-Pacific late last year. This quarter we also signed new omnichannel partnerships with multinational retailer, ALDO [Phonetic], and global hospitality company, Delaware North. As for our vertical market solution, we were pleased that the overall portfolio delivered 20% revenue growth compared to the prior year and bookings trends remain strong across the portfolio. We continue to see strong performance in AdvancedMD and TouchNet, the latter of which produced record new sales for the first half of 2022.
Further, Xenial continued to realize strong bookings momentum, including increased demand for our kiosk and mobile offerings from food service management customers and new wins with the Winnipeg Jets Canadian Life Center and Ole Miss University in the events and stadium vertical. We also saw local currency growth accelerate across our international businesses this quarter, with particularly strong results in the U.K., Spain and Central Europe. I'm excited to announce that we recently signed our merchant referral relationship with Virgin Money, achieving a significant milestone in our strategic alliance combining issuing and acquiring capabilities. Our Issuer Solutions business delivered $459 million in adjusted net revenue, a 6% improvement on a constant currency basis from the second quarter of 2021, consistent with our expectations and long-term growth target for this segment.
Issuer adjusted operating margin of 43.5% increased 60 basis points, excluding the impact of MineralTree. On a reported basis, it was down 40 basis points from the prior year. Our transaction and account-on-file revenue growth grew low double-digits. accelerating from the mid-single-digit growth achieved in the first quarter. Notably, commercial card volumes increased nearly 35%, with growth improving throughout the period. We also converted the Gap portfolio of approximately 13 million accounts, which was purchased by our long-standing partner, Barclays late last year. During the quarter, we signed long-term contract extensions with multiple clients, including Carrefour in Brazil following its acquisition of the Grupo BIG portfolio in the region.
And more recently, we signed a long-term agreement with another market-leading retailer in South America, SyncOnSet [Phonetic], to enter the Chilean market. This will provide further opportunities for our business with today's announcement of our acquisition of EVO. From a cash flow standpoint, we delivered $432 million of adjusted free cash flow for the quarter. And we continue to target converting roughly 100% of adjusted earnings to adjusted free cash flow for the full-year. We invested $168 million in capital expenditures during the quarter and expect roughly $600 million in capital expenditures for 2022, consistent with our prior outlook. On the capital allocation front, we repurchased just over 4.5 million of our shares this quarter for approximately $600 million. Our balance sheet remains extremely healthy. And we ended the period with roughly $2.5 billion of liquidity and leverage of 2.9 times on a net debt basis.
As Jeff and Cameron discussed in detail, we have entered a definitive agreement to acquire EVO Payments for $34.00 per share in cash, representing an enterprise value of approximately $4 billion. Silver Lake will invest $1.5 billion in Global Payments in the form of privately placed convertible senior notes, which will serve as a source of funding together with our committed bridge facility from our banks. The convertible note will have a cash coupon of 1%, a seven-year term, and a conversion price of $140.66. In addition, as is customary with convertible instruments, we expect to execute a call spread overlay to significantly raise the effective conversion premium. We are very excited to have Silver Lake as a new partner, and their investment underscores their long-term commitment and their strong belief in the opportunity ahead for Global Payments.
Additionally, we entered into a definitive agreement to sell Netspend's consumer assets to Searchlight Capital and Rev Worldwide for $1 billion. We also expect the Netspend transaction to close by the end of the first quarter of 2023. Following both of these transactions, we expect our net leverage to be approximately 3.9 times at close. We expect our leverage by the end of calendar year 2023 to be back to current levels, highlighting the substantial free cash flow generation we discussed at our investor conference last September. We expect to maintain our current investment-grade ratings.
Turning to the outlook of 2022. We remain encouraged by the underlying trends we are seeing in the business and our outlook for the year remains unchanged, excluding impacts from FX and M&A. On a constant currency basis, we expect full-year adjusted net revenue before dispositions to be in a range of $8.48 billion to $8.55 billion, reflecting growth of 10% to 11% over 2021. This is consistent with our prior outlook from our May call. Adjusted earnings per share on a constant currency basis are expected to be in the -- in a range of $9.53 to $9.75, reflecting growth of 17% to 20% over 2021. This is also consistent with our prior outlook. Also, we are raising our expectations for adjusted operating margin expansion to up to 150 basis points, an increase from the prior outlook of up to 125 basis points.
On a reported basis, we now expect foreign currency to be in excess of an incremental 100 basis points headwind for the remainder of 2022, bringing the total impact to 200 basis points to 250 basis points for the year. Additionally, we are now reclassifying Netspend's consumer assets as held for sale in light of our decision to sell the business and therefore, removing it from our outlook for the remainder of the year. Also, effective July 1, we have moved Netspend's core B2B assets to our Issuer segment as we look to continue to bolster our leading B2B businesses. In combination with incremental adverse FX headwinds, the reclassification of Netspend's consumer assets to held for sale, and the exit of our Russian business, we now expect to report adjusted net revenue in a range of $7.9 billion to $8 billion for calendar 2022.
We continue to expect to report adjusted EPS in the range of $9.45 to $9.67 for 2022, which includes an anticipated roughly $0.11 impact from incremental adverse foreign currency exchange rates since May. We are maintaining the same guidance range relative to our original 2022 outlook as we are absorbing additional currency headwinds and the exit from Russia, albeit we expect to be toward the lower end for those reasons. This adjusted EPS outlook assumes ongoing pandemic recovery and a stable macro economy throughout the remainder of the year. As our slide presentation today indicates, we expect the acquisition of EVO and the sale of Netspend's consumer assets to help deliver on the goals that we set forth at our September 2021 Investor Conference. We raised our cycle guidance then to double-digit top-line growth and high-teens to 20% adjusted earnings per share growth.
Upon the closing of these two transactions, our Merchant business will represent 75% of our Company and Issuer Solutions, inclusive of the Netspend B2B assets will represent 25%. This intentional mix shift will provide us with enhanced confidence in achieving our raised financial targets over the cycle. At full run rate synergies from the EVO acquisition, we expect the combined result of the purchase of EVO and the disposition of Netspend's consumer assets to be roughly neutral to adjusted earnings per share. In effect, we have swapped Netspend's consumer assets for EVO, which is consistent with our strategy and core customer focus. And we've done so while concurrently bolstering the growth prospects of our Issuer business by retaining Netspend's attractive B2B businesses.
And with that, I'll turn the call back over to Jeff.
