Payment solutions provider TSYS has agreed to acquire TransFirst, a portfolio company of Vista Equity Partners, for $2.35bn in an all-cash transaction.
The acquisition, which is scheduled to close in the second quarter of 2016, is expected to enhance TSYS’ offering in the high-growth areas of integrated payments, e-commerce and omni-channel services.
TransFirst provides merchant solutions to over 235,000 small and medium-sized businesses in the US. through its proprietary technology, end-to-end customized and multi-channel products and superior customer service.
It has over 1300 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.
Following the acquisition, TSYS will support over 645,000 business outlets.
Commenting on the deal, TSYS president and CEO Troy Woods said: "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.
"With the added strength of TransFirst, TSYS will be uniquely positioned with significant scale and strength across issuer processing, merchant services and prepaid program management," Woods added.
TransFirst president and CEO John Shlonsky said: "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."
Upon completion of the acquisition, John Shlonsky will be named as senior executive vice president and president of the TSYS Merchant segment, replacing Mark Pyke.