TSYS Completes Acquisition of NetSpend
July 01 2013 - 8:51AM
Business Wire
TSYS (NYSE: TSS) and NetSpend Holdings, Inc. (NASDAQ: NTSP)
announced today that TSYS has completed its acquisition of
NetSpend. NetSpend is now a wholly owned TSYS subsidiary and TSYS’
fourth operating segment focusing on direct to consumer products
and services. NetSpend will continue to be led by chief executive
officer Dan Henry and president Chuck Harris. The segment will
report directly to Troy Woods, president and chief operating
officer of TSYS.
Headquartered in Austin, Texas, NetSpend is a leading provider
of general purpose reloadable (GPR) prepaid debit cards, PayCards
and related financial services to the estimated 68 million
underbanked consumers in the United States who do not have a
traditional bank account or who rely on alternative financial
services.
“This is a transformational day for everyone at TSYS and
NetSpend, as this deal brings together two companies with a shared
vision and purpose that focuses on meeting the needs of people. It
also takes TSYS closer to the consumer than we have ever been
before,” said Philip W. Tomlinson, chairman and chief executive
officer of TSYS. “Our strategy has been, and continues to be, to
further expand our role in the payments value chain and bring more
innovative solutions to market. The acquisition of NetSpend is
further evidence that we are moving forward in that direction, and
have strengthened our foothold in the rapidly growing prepaid
industry.”
“This is a truly amazing time at NetSpend, and we are ready to
get to work,” said Dan Henry, chief executive officer of NetSpend.
“Being able to tap into the strength and resources of TSYS and
combine them with the unique product set and fast growing business
of NetSpend will enable us to better serve the underbanked market,
which is our focus and our passion.”
NetSpend previously operated as a publicly traded company.
NetSpend common stock ceased trading on NASDAQ prior to the opening
of trading on Monday, July 1, 2013, and will be delisted. Under the
terms of the definitive merger agreement between the parties,
NetSpend stockholders are entitled to receive $16.00 per share in
cash for each share of NetSpend common stock that they hold.
Letters of transmittal allowing NetSpend stockholders of record to
deliver their shares to the paying agent in exchange for payment of
the merger consideration will be distributed shortly after the
closing. Stockholders of record should be in receipt of the letter
of transmittal before surrendering their shares. Stockholders who
hold shares through a bank or broker will not have to take any
action to have their shares converted into cash, as such
conversions will be handled by the bank or broker.
Additional details of the acquisition, as well as revised 2013
guidance for TSYS, will be discussed on the company’s
second-quarter analyst call on July 23, 2013.
About NetSpend
NetSpend is a leading provider of general-purpose reloadable
prepaid debit cards and related financial services to the estimated
68 million underbanked consumers in the United States who do not
have a traditional bank account or who rely on alternative
financial services. The Company's mission is to develop products
and services that empower underbanked consumers with the
convenience, security and freedom to be self-banked. Please visit
http://www.netspend.com for more information.
About TSYS
At TSYS, (NYSE: TSS), we believe payments should revolve around
people — not the other way around. We call this belief
"People-Centered PaymentsSM." By putting people at the center of
every decision we make, with unmatched customer service and
industry insight, TSYS is able to support financial institutions,
businesses and governments in more than 80 countries. Offering
merchant payment-acceptance solutions as well as services in
credit, debit, prepaid, mobile, chip, healthcare and more, we make
it possible for those in the global marketplace to conduct safe and
secure electronic transactions with trust and convenience.
TSYS’ headquarters are located in Columbus, Georgia, with local
offices spread across the Americas, EMEA and Asia-Pacific. TSYS
provides services to more than half of the top 20 international
banks, and has been named one of the 2013 World's Most Ethical
Companies by Ethisphere magazine. TSYS routinely posts all
important information on its website, for more please visit us at
www.tsys.com.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20130701005789/en/
TSYS Media RelationsCyle Mims,
+1-706-644-3110cylemims@tsys.comorTSYS Investor RelationsShawn
Roberts, +1-706-644-6081shawnroberts@tsys.com
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