A rising star accelerates

As Total System Services (TSYS), a leading global payments solutions provider, has grown to become one of the largest payment companies in the U.S., King & Spalding has been a key partner. When TSYS moved to substantially expand its merchant business with a high-stakes acquisition, the strength of our partnership was brought to bear.

$2.35 billion acquisition

Key win in an expansion race

An acquisition target with a viable alternative

Growth in electronic payments

As in-person, digital and mobile payments continue to grow, the companies responsible for setting up merchants’ payment systems and processing those payments grow, as well. With established businesses in both of these areas, TSYS is positioning itself to have the scale to compete in this growing market.

A market with

$65 billion

in combined revenue

(American Transaction
Processors Coalition)

Currently dominated by several large global banks

TSYS was the world’s ninth-largest merchant processor by volume in 2016*

*Nilson Report

Growth in payments expected
to reach $7 trillion by 2018. McKinsey – Innovation and disruption in U.S. merchant payments.

Embedded M&A advisory

As TSYS expanded from its beginnings processing credit cards for Synovus Bank to being a major player in the payments industry, K&S executed not only on the legal aspect of all major transactions, but also acted as a strategic advisor on acquisition strategy.

Winning in a competitive environment

While any FinTech acquisition is inherently complex, this was a special case: The private equity backers of TransFirst were pursuing an IPO as an alternative to the sale to a strategic partner like TSYS. The TransFirst acquisition offered little margin for error.

2010

March 2010: Acquires 51% of First National Merchant Solutions; buys remaining 49% later in 2010.

2013

July 2013: Buys leading debit card provider NetSpend for approximately $1.4 billion.

2016

April 2016: Acquires leading U.S. merchant solutions provider TransFirst in $2.35 billion all cash transaction.

As emerging technology continues to disrupt the financial technology space, K&S is able to bring together cross-disciplinary teams to address new challenges on this shifting terrain.

Evolving with the industry

While different groups at K&S specialize in the varying aspects of the financial technology business, they’re able to come together as a team to serve client needs from beginning to end.