* Co to be rebranded as TSYS Merchant Solutions
* Transaction closed on Jan. 1
Jan 4 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
$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
(Reporting by Brenton Cordeiro in Bangalore; Editing by Sriraj