TSYS (NYSE: TSS), a leading global payment processor, has agreed to acquire U.S. merchant solutions provider TransFirst from Vista Equity Partners, in an all-cash transaction valued at $2.35 billion.

TransFirst delivers merchant solutions to more than 235,000 small and medium-sized businesses in the U.S. through its proprietary technology, end-to-end customized and multi-channel products and superior customer service. The transaction enhances TSYS’ offering and position in the high-growth areas of integrated payments, e-commerce and omni-channel services. As a result of the transaction, TSYS will be the 6th largest U.S. acquirer based on net revenue, supporting more than 645,000 merchant outlets. TSYS expects the transaction to be accretive in the low double digits to adjusted EPS for the first twelve-month period following closing, excluding one-time acquisition-related fees and expenses.

TransFirst leads the market with its partner-centric distribution model supporting more than 1,300 integrated technology and referral partners in high-growth areas that include Integrated Software Vendors (ISVs), healthcare, not-for-profit, referral banks, associations and e-commerce. TransFirst has approximately 1,000 employees with offices throughout the U.S.

“TransFirst significantly increases our scale and opportunity within the highly attractive merchant space, and particularly the profitable and fast-growing small and medium-sized business segment,” said M. Troy Woods, chairman, president and CEO of TSYS.

“TransFirst is excited about this transaction and the opportunities it will create. We believe the combination of our two organizations will form an even stronger platform for us to grow new sales, provide more robust solutions for our partners and merchants, and expand an already outstanding service model,” said TransFirst president and CEO, John Shlonsky.

“We are grateful to John and the TransFirst team for their strong partnership, during which time they created a true leader in payment solutions,” said Robert F. Smith, founder, chairman and CEO of Vista Equity Partners.

Effective with the closing of the transaction, Mark Pyke, senior executive vice president and president of the TSYS Merchant segment, will be leaving TSYS after six years of service. Mr. Shlonsky will assume Mr. Pyke’s duties for the combined businesses at that time.

The Board of Directors of TSYS has approved the transaction, which is expected to close in Q2 2016, subject to regulatory approvals and other customary closing conditions.

Bank of America Merrill Lynch and GCA Savvian Advisors, LLC are acting as financial advisors, First Annapolis Consulting is acting as strategic advisor and King & Spalding LLP is acting as legal advisor to TSYS. Credit Suisse, Goldman Sachs and J.P. Morgan are acting as financial advisors and Kirkland & Ellis is acting as legal advisor to TransFirst and Vista.

Total System Services, Inc. (TSYS) provides electronic payment processing services to banks and other financial institutions in the United States, Europe, Canada, Mexico, and internationally. It operates through four segments: North America Services, International Services, Merchant Services, and NetSpend. The company offers account processing and output services. It also provides fraud management and other services. Further, it provides general purpose reloadable prepaid debit cards and payroll cards, as well as alternative financial services to underbanked and other consumers; and transaction processing, disaster recovery, and other services for banks and bankcard issuers. The company was founded in 1982 and is based in Columbus, Georgia.

TransFirst is a leading provider of secure transaction processing services and payment enabling technologies. Founded in 1995, TransFirst continues to attain significant market share and world-class expertise in growing and profitable industry segments. TransFirst is headquartered in Hauppauge, New York, and has operations facilities in Aurora, Colorado; Broomfield, Colorado; Franklin, Tennessee; and Cypress, California.

Vista Equity Partners is a U.S.-based investment firm with offices in Austin, Chicago and San Francisco, with more than $14 billion in cumulative capital commitments. It currently invests in software, data and technology-based organizations led by world-class management teams with long-term perspective.



Thank you for contacting ExitHub. We'll respond as soon as possible.


© 2018 ExitHub Inc. All Rights Reserved.

Log in with your credentials


Forgot your details?

Create Account