UPDATE 1-TSYS buys rest of merchant-acquiring JV for $170 mln
* Co to be rebranded as TSYS Merchant Solutions
* Transaction closed on Jan. 1
Jan 4 (Reuters) - Payment processor TSYS (TSS.N) said it acquired the remaining 49 percent interest in its joint venture, First National Merchant Solutions LLC (FNMS), from First National Bank of Omaha [FINNB.UL] for $169.6 million.
The transaction closed on Jan. 1, and the company will be rebranded as TSYS Merchant Solutions, the Columbus, Georgia-based company said in a statement.
"This is a good use of cash, as it helps to further diversify TSYS' business, and it should be nicely accretive to earnings in 2011," analyst Greg Smith of Duncan Williams said.
The JV came into being in April last year, when TSYS acquired a 51 percent in First National Bank's merchant acquiring business for about $150.5 million.
TSYS had previously said the joint venture would contribute $95-$97 million in revenue, and $2-$3 million in net income for 2010. [ID:nSGE63J0LN]
Shares of TSYS, which have been roughly flat since the company announced the joint venture agreement, were down 6 cents at $15.68 in morning trade Tuesday on the New York Stock Exchange. (Reporting by Brenton Cordeiro in Bangalore; Editing by Sriraj Kalluvila)