TSYS, Central Payment form joint venture

In a joint venture revealed Aug. 9, 2012, global ISO and processor Total System Services Inc. (TSYS) acquired 60 percent of U.S. ISO acquirer and processor Central Payment Co. LLC. TSYS, a publicly traded company, said through its spokesman Cyle Mims, it is "unable to disclose the terms of the agreement."

Central Payment focuses on restaurant, personal services and retail market segments. It serves more than 40,000 merchants and processes more than $3.5 billion in credit card sales annually. TSYS is an international company valued at approximately $3 billion; its broad platform supports financial institutions, businesses and governments in 80 countries.

TSYS, Central Payment both benefit

TSYS Merchant Services President Mark Pyke said the addition of Central Payment with its 700 agents enhances his company's distribution model. "This move is another example of our focus on growing our merchant acquiring business and expanding beyond processing," Pyke said. "Central payment plans to aggressively pursue experienced sales agents as an affiliate of TSYS."

Pyke said TSYS' reputation and scalable technology platform model will help Central Payment expand its independent sales agent model. "TSYS has made public statements about having an aggressive appetite for additional merchant acquiring investments to help grow our merchant presence and achieve our goal to become a top 10 global acquirer," he noted. "This joint venture further reinforces our commitment to diversification of our revenue concentration within TSYS."

Individual brands remain distinct

Pyke said the two companies worked together for some time before the joint venture. The agreement allows Central Payment to continue to work independently as an independent sales agent-based merchant acquirer. TSYS will continue as Central Payment's payment processor.

"Central Payment has a strong brand reputation and solid sales distribution model which will not be disrupted as a result of the joint venture," Pyke said. "The JV will be governed by a board of directors with representatives from both companies."

Central Payment Co-Managing Director Matthew Hyman said Central payment plans to take full advantage of the systems, support and management team TSYS has in place today.

"That, combined with the TSYS brand reputation in the payments industry and available working capital, clearly demonstrates how this JV further positions TSYS and Central Payment for significant growth," he said. "Our partnership expands TSYS' merchant perspective, and our company culture aligns with their focus on people-centered payments."

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