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A Thing Four

Concord EFS Acquires Card Payment Systems


Card Payment Systems, a New York-based reseller of card-based payment processing services, is being acquired by Concord EFS, Inc. Formed in 1996, CPS has specialized in providing card-based payment processing services to ISOs, who in turn sell those services to retailers. The deal involves big money—Concord is issuing 6.2 million shares of common stock to acquire CPS. CPS is expected to bring in approximately $84 million in revenues and $15 million in pre-tax net income this year.

“This is a great transaction for Concord,” said Edward A. Labry III, Concord president, noting the financial and strategic ramifications of the agreement. “We’ll be able to deliver a turnkey package that is unique in the ISO market that includes equipment, terminal leasing, credit, debit, EBT, acceptance, sponsorship in to credit card associations, debit networks, signature capture, check conversion, and back end settlement.” ISOs represent an important addition to the other five industry segments that have been traditional markets for Concord’s end-to-end products.

CPS currently services approximately 23,000 merchant accounts, providing credit card, debit card, EBT, and e-commerce payment solutions. CPS adds 2000 new accounts per month and processes in excess of $1.8 billion in acquiring volume annually.

“We’re excited about joining the Concord team,” said Larry Stone, CPS president. “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.”

For more information about Concord EFS please call (901) 371-8000. For ISO opportunities with CPS, call Larry Stone at (800) 211-6855.


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