TSYS 'bags big elephant' with BofA card deal
(Reuters) - Total System Services Inc (TSS.N) said it had won a contract to provide processing services for Bank of America's (BAC.N) U.S. consumer credit card business, sending the payment processor's shares to a three-year high.
TSYS already processes the bank's U.S. and international commercial credit card portfolio.
Though the terms of the six-year deal were not disclosed, Jefferies analyst Jason Kupferberg said TSYS 'bagged a big elephant.'
"We believe this win will have a material benefit on profit, though it is premature to accurately size the impact," Kupferberg said in a note to clients.
Shares of the Columbus, Georgia-based company touched a three-year high of $25 on Thursday before retreating to $24.46, a 3 percent gain, in morning trade on the New York Stock Exchange.
(Reporting by Jochelle Mendonca in Bangalore; Editing by Rodney Joyce)
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