Payment processor TSYS (TSS) said Tuesday that it has agreed to buy prepaid debit card provider Netspend Holdings, Inc. (NTSP) in an all cash deal valued at about $1.4 billion.
Under the deal, NetSpend shareholders will receive $16.00 in cash for each share of NetSpend common stock.
TSYS expects the deal to be accretive to GAAP EPS for the first 12 month period following closing, excluding one-time acquisition related fees and expenses
The deal is expected to close in mid-2013.
"The NetSpend acquisition is truly a transformational event for TSYS and consumers alike. It enables us to meet our strategic goals of diversifying our business, being a more innovative payment solutions provider and expanding our role within an area of payments that is expected to grow at a 20% annual rate over the next four years*. The acquisition also complements our already strong presence in the prepaid processing space," said Philip W. Tomlinson, chairman of the board and chief executive officer, TSYS.
For comments and feedback: editorial@rttnews.com