Global payments solution provider TSYS has agreed to acquire payment technology developer Cayan in a deal worth $1.05bn.
The all cash transaction is expected to be accretive to TSYS’ net revenue growth and adjusted diluted EPS after first year since closing.
Cayan, which is a portfolio company of Parthenon Capital Partners, provides businesses with payment technology, from simple processors to multichannel customer engagement services. The Boston-headquartered company has a range of payment terminals available, to its customer base of over 70,000 merchants and 100 integrated partners across the US.
TSYS is a global payments solution that helps merchants from issuer processing and through to prepaid program management. Last year, the company generated 4.2bn in revenue and processed over 25.5 billion transactions.
TSYS chairman, president and CEO Troy Woods said, “The acquisition of Cayan strategically complements our merchant goals to become a leading payment solutions provider to small and medium size businesses in the U.S. by delivering ‘best in class’ services and solutions.”
BofA Merrill Lynch and Greenhill & Co. served as financial advisors, while Alston & Bird acted as legal advisors to TSYS. Cayan’s financial advice was supplied by Financial Technology Partners and legal support came from Kirkland & Ellis.
This month has seen a range of point-of-sale businesses raise capital, with Sweden-based iZettle closing $40m from investors, last week. Other investments this month include Mumbai-based POS solution Mswipe picking up a $40m Series D and Russian Merkata Smart POS bagging an undisclosed investment from FinSight Ventures.
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