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FYI: EFS Buys CPS |
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Concord EFS
has announced that it will acquire Card Payment Systems (CPS). As many GS
readers know from our annual “ISOs Looking for Agents” article, CPS
was formed in 1996 and specializes in providing card-based payment
processing services to ISOs who in turn sell those services to merchants.
“We’re excited about joining the Concord team,” said CPS president
Larry Stone. There’s a lot of fragmentation in the ISO market today, and
I believe it’s ready for a processor like Concord that can offer a
complete range of processing services for ISOs of all sizes. I’m looking
forward to leading and building this new distribution channel.”
CPS services approximately 23,000 merchant accounts, adding over 2,000 new
accounts per month and processing in excess of $1.8 billion in acquiring
volume per year. They provide credit card, debit card, electronic benefits
transfer, and e-commerce payment solutions to retailers, mail-order firms,
and Internet-based businesses. The privately owned company has a sales
force of over 250.
Edward A. Labry III, Concord president, said, “We’ll be able to
deliver a turn-key package that is unique in the ISO market, including
equipment, terminal leasing, credit, debit and EBT acceptance, sponsorship
into credit card associations and debit networks, signature capture, check
conversion, and back-end settlement. Independent sales organizations
represent an important addition to the other five industry segments that
have been the traditional markets for our end-to-end products.”
Under the terms of the acquisition, which is expected to be completed in
the first quarter of 2000, Concord will issue 6.2 million shares of its
common stock to acquire CPS, which is expected to add approximately $84
million in revenues and $15 million in pre-tax net income in 2000. © Copyright
1995-2000 |
