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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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