US payment processor Tsys has acquired the remaining 49% stake in First National Merchant Solutions, a joint venture created in association with First National Bank of Omaha just eight months ago.
Tsys formed a joint venture with FNBO in April 2010, when it acquired a 51% controlling interest in the direct merchant acquirer and transaction processor.
Ranked as the 10th-largest merchant acquirer in the US by dollar volume in 2009 by The Nilson Report, FNMS has a 57-year history in the acquiring industry with more than 300,000 active merchant outlets in its portfolio. The company reported net revenue of $93 million in 2009.
The 2009 transaction - for which Tsys paid $150.5 million for its 51% stake - positioned the vendor as a full-service merchant acquirer for the first time in its history.
Philip Tomlinson, Tsys chairman and CEO comments: "We have been very pleased with the performance of the joint venture, and determined that total ownership is important to our diversification strategy."
Tsys acquired the remaining 49% of FNMS for approximately $169.6 million. The company will be rebranded as Tsys Merchant Solutions.
Daniel O'Neill, president of FNBO, comments: "First National recognises the strategic and capital benefits of completing the next phase of this venture. The timing is right for all parties involved."
The transaction closed 1 January, 2011.