Tsys is to spend $150.5 million to acquire a controlling interest in First National Merchant Solutions, which it will run in a joint venture partnership with First National Bank of Omaha.
Ranked as the 10th-largest merchant acquirer in North America by dollar volume, FNMS has a 57-year history in the acquiring industry with more than 300,000 merchant outlets in its portfolio. The company reported net revenue of $93 million in 2009.
Announcing the deal, Philip Tomlinson, chairman of the board and chief executive officer of Tsys. says: "After years of providing acquiring solutions to our clients, this joint venture positions Tsys as a full-service merchant acquirer for the first time in our company's history."
He says Diana Mehochko will remain as president of the new company and her executive management team will continue in their existing capacity.
Under terms of the agreement, Tsys will acquire 51% ownership of FNMS for approximately $150.5 million, while FNBO will control the remaining 49%. The transaction is expected to close 1 April, 2010.