ort Worth, Texas-based First American Payment Systems, L.P. acquired Plano, Texas-based Certified Merchant Services Ltd. (CMS) on October 27, 2003. The terms of the transaction were not disclosed.

First American, founded in 1990, acquired CMS through its partnership with Lindsay Goldberg & Bessemer L.P, a New York-based private equity firm with more than $2 billion of committed capital. First American partnered with the firm in April 2003.

Both First American and CMS provide electronic transaction processing services to merchants. CMS services more than 30,000 small and mid-size merchants in the U.S. through a sales network of 175 agents. "This acquisition is another building block in the business strategy and growth objectives of First American Payment Systems L.P.," Neil Randel, President and CEO of First American said in a statement.

In September 2003, First American hired mergers and acquisitions specialist Stephen D. Kane to assist in pursuing its growth strategy.

Kane was integrally involved in the final negotiations of the deal.

"The proximity of the two companies made it easy to relocate from one facility to another," Randel said. "We're even expanding the CMS facility in Addison, Texas."

First American estimated that the combined companies would process approximately $4 billion in Visa/MasterCard transactions in 2003 and would provide services for more than 63,000 U.S. merchants.

"CMS' aggressive sales engine combined with First American's excellence in service will make a great company," said Mary Dees, President of Creditranz.com and current ETA President.

CMS settled a dispute with the FTC in late December 2002 over allegations of "unfair and deceptive business practices" and then took great steps to improve its business under the guidance of Dees; she acted as sole Receiver for CMS through the later part of the FTC investigation and was appointed General Manager of CMS at the time of the settlement.

Dees said she will serve as a consultant to the combined companies.