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“Partnering with TSYS allows us to gain technology and tools that will permit us to accelerate growth and enhance our capabilities to serve our growing customer base.” |
FNMS offers transaction processing, merchant support and underwriting, and business 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 North America by dollar volume, FNMS has a 57-year history in the acquiring industry with more than 300,000 merchant outlets in its diverse portfolio.
“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,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS. “We felt that FNMS presented the right opportunity for TSYS to broaden its participation in the payments industry.”
“This joint venture gives FNMS increased opportunities to compete in a rapidly-changing industry,” said Daniel O’Neill, president of FNBO. “Partnering with TSYS allows us to gain technology and tools that will permit us to accelerate growth and enhance our capabilities to serve our growing customer base.”
O’Neill said that the agreement affirms FNMS’ commitment to Omaha. Diana Mehochko will remain as president of the new company and her executive management team will continue in their existing capacity.
“Strategically, we knew that FNMS offered a unique opportunity to attract the right partner who brought the significant investment required to take this important, national business to the next level,” he said. “The partnership is committed to best-in-class technology, product offerings and service to customers.”
Under terms of the agreement, TSYS will acquire 51 percent ownership of FNMS for approximately $150.5 million, while FNBO will control the remaining 49 percent. FNMS had net revenue of $93 million in 2009. The transaction is expected to close April 1, 2010.
TSYS expects the transaction to be accretive to diluted earnings per share in the first full calendar year of operation. TSYS management will discuss the acquisition in their 1Q Earnings Conference Call on April 20, 2010. Please refer to the attached Fact Sheet for further details about both companies and the joint venture terms. TSYS has posted a slide presentation relating to this transaction in the Investor Relations section of its Web site at www.tsys.com, under “Investor Relations” then “Webcasts and Presentations.”
About TSYS
TSYS (NYSE: TSS) is one of the world’s largest companies for outsourced payment services, offering a broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit, healthcare, loyalty and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions. For more information contact news@tsys.com or log on to www.tsys.com. TSYS routinely posts all important information on its website.
About First National Bank of Omaha
First National Bank of Omaha is a subsidiary of First National of Nebraska. First National of Nebraska has grown into the largest private banking company in the United States. First National and its affiliates have more than $17 billion in managed assets and nearly 5,700 employees located in 35 states. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.
First National Merchant Solutions has been a subsidiary of FNBO and provides complete payment processing and first-rate services and customized solutions to businesses of all sizes across the nation. For more information, visit www.fnms.com.
* The Nilson Report March 2009
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