TSYS Acquires TransFirst for $2.35 Billion, Solidifies Omnichannel Offering
Jan. 28, 2016
Payment processor TSYS on Tuesday announced it has agreed to acquire New York-area merchant services provider TransFirst from its private equity owner for $2.35 billion in cash. It is the largest acquisition ever undertaken by TSYS and will turn the Columbus, Ga.-based payments provider into the one of the largest merchant acquirers in the U.S., according to a statement.
TSYS said the acquisition bolsters its position with small and midsize merchants, adding more than 235,000 served by TransFirst, along with increased strength in e-commerce.
“This combination positions us as the sixth largest U.S. merchant acquirer based on net revenue with three strategically important benefits,” said TSYS’s Chairman and CEO M. Troy Woods during the company’s earnings call on Tuesday. “One, an expanded sales and distribution network; two, a stronger integrated payments channel; and three, enhanced multi-channel payment solutions.”
Woods also noted it was acquiring TransFirst’s “more robust” e-commerce capability. The companies expect the deal to close in Q2 2016 and that it will be accretive to TSYS’s earnings in the first 12 months.