Heartland Payment Systems (NYSE:HPY), a leading provider of credit/debit/prepaid card processing, payroll, check management and payment services, today completed the acquisition of the Network Services business of Alliance Data Systems Corporation (NYSE: ADS) for $77.5 million in cash.
The parties' definitive agreement for this acquisition was previously announced on May 5, 2008.
"With the closing of the acquisition, Heartland becomes one of the leading providers of payment processing services to the petroleum industry, the second largest - and one of the fastest growing - verticals in our market," said Bob Carr, chairman and chief executive officer of Heartland. "By integrating Network Services' intellectual property with Heartland's proprietary end-to-end processing platform, we can achieve processing efficiencies and economies of scale to offer our combined clients and others best-in-class payments solutions. Our national sales organization of more than 1,200 relationship managers will soon be offering these solutions to companies nationwide. We are very pleased to have the Network Services clients and employees join our organization."
Heartland believes the acquisition will be non-dilutive to earnings in 2008 and accretive thereafter.
SunTrust Robinson Humphrey served as financial advisor, and Womble Carlyle Sandridge & Rice served as legal advisor for Heartland in connection with this transaction.