TSYS Makes All-Cash Offer To Buy Cayan For $1.05B

Global payments solutions provider TSYS announced Monday (Dec.18) that it would acquire payments technology company Cayan in a $1.05 billion all-cash deal, according to a press release.

TSYS said the deal is expected to promote modest additions to TSYS’ net revenue growth and adjusted diluted earnings per share (EPS) in the first full year after the deal closes. Cayan, a portfolio company of Parthenon Capital Partners, provides technology services to more than 70,000 merchants and 100-plus integrated partners in the U.S.

“The acquisition of Cayan strategically complements our merchant goals to become a leading payment solutions provider to small and medium-sized businesses in the U.S…” said Troy Woods, chairman, president and chief executive officer for TSYS. “TSYS already has tremendous scale and distribution capabilities. The addition of Cayan’s unified commerce solutions puts us in a strong competitive position to jointly offer a broader set of value-add products and services to our partners and merchants.”

TSYS expects the transaction to close in the first quarter of 2018.

“Cayan and TSYS are aligned in our strategy to provide cutting-edge payment solutions and a robust product offering to merchants across the U.S.,” said Henry Helgeson, co-founder and chief executive officer at Cayan. “We’re excited about the opportunity to bring innovative products to a broader customer base.”

The billion-dollar-plus purchase of Cayan comes as TSYS is expanding its relationship with Capital One. Under the terms of that agreement, which was announced late last week, TSYS will continue to provide processing services for Capital One’s North American roster, a list that spans both consumer and commercial credit card accounts.

The agreement is being extended across “multiple years,” TSYS noted. The company also reported Capital One came in as a top-five issuer of U.S.-based general purpose credit cards last year, ranking second with 89.4 million total cards. Data from the February 2017 edition of the Nilson Report also shows that Capital One was fifth overall based on total purchase volume, a figure that stood at $249 billion.