A Columbus-based company payment company is making a $1.4 billion acquisition.
TSYS, a payment-acceptance company, is purchasing the reloadable pre-paid debit card company NetSpend. It is an all-cash deal.
The Austin, Texas company provides financial services to about 2.4 million people who don’t have bank accounts, and provides corporate payroll debit cards to those without banks. The deal will mean NetSpend shareholders get $16 a share.
In a statement, TSYS chairman and CEO Philip Tomlinson said the acquisition is a transformative event that would help diversify TSYS’ business. It will allow the company to be a “more innovative payment solutions provide,” he said. The business is expected to grow sharply in the next several years.
The purchase, which is subject to regulatory approval, is scheduled to close in the middle of the year.
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