Ten months after announcing a formal joint-venture with First National Bank of Omaha’s merchant acquiring division First National Merchant Solutions, and nine months after completing the first transaction, Total Systems Services (TSYS) has bought out their partner’s remaining 49% ownership stake for roughly $170 million. FNMS will be rebranded as TSYS Merchant Solutions and will offer payment solutions directly to merchants and maintain a referral agreement with FNBO.
FNMS offers transaction processing, merchant support, credit underwriting, risk management and value-added services, as well as Visa®- and MasterCard®-branded prepaid cards for businesses of any size. Ranked as the 10th-largest merchant acquirer in the U.S. by dollar volume in 2009 by The Nilson Report*, FNMS has a 57-year history in the acquiring industry with more than 300,000 active merchant outlets* in its diverse portfolio.
“We have been very pleased with the performance of the joint venture, and determined that total ownership is important to our diversification strategy,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS. “TSYS Merchant Solutions positions TSYS for further growth in the acquiring industry.”
“We knew from the start of this relationship that TSYS was the right partner to take First National Merchant Solutions to the next level,” said Daniel O’Neill, president of FNBO. “At the same time, First National recognizes the strategic and capital benefits of completing the next phase of this venture. The timing is right for all parties involved.”
Read the Original Press Release: http://www.tsys.com/news/Releases/20110104FMNSacquisition.cfm
