Tsys seizes control of First National Bank of Omaha joint venture

Tsys seizes control of First National Bank of Omaha joint venture

US payment processor Tsys has acquired the remaining 49% stake in First National Merchant Solutions, a joint venture created in association with First National Bank of Omaha just eight months ago.

Tsys formed a joint venture with FNBO in April 2010, when it acquired a 51% controlling interest in the direct merchant acquirer and transaction processor.

Ranked as the 10th-largest merchant acquirer in the US 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 portfolio. The company reported net revenue of $93 million in 2009.

The 2009 transaction - for which Tsys paid $150.5 million for its 51% stake - positioned the vendor as a full-service merchant acquirer for the first time in its history.

Philip Tomlinson, Tsys chairman and CEO comments: "We have been very pleased with the performance of the joint venture, and determined that total ownership is important to our diversification strategy."

Tsys acquired the remaining 49% of FNMS for approximately $169.6 million. The company will be rebranded as Tsys Merchant Solutions.

Daniel O'Neill, president of FNBO, comments: "First National recognises the strategic and capital benefits of completing the next phase of this venture. The timing is right for all parties involved."

The transaction closed 1 January, 2011.

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