TSYS, a leading global payment solutions provider announced yesterday that they will acquire NetSpend, a leading U.S. provider of general purpose reloadable (GPR) prepaid debit cards to underbanked consumers. It’s a transaction valued at approximately $1.4 billion.
At Prepaid Expo, attendees will get exclusive insight from NetSpend that will provide analysis on this strategic move. Dan Henry, CEO of NetSpend, will be giving his insights on the future of GPR alongside a panel of heavy hitters. Additionally, Tim Pfeifer, Corporate Counsel at NetSpend, will join Don Mosher of Schulte Roth & Zabel for an executive session focused on M&A and IPOs in prepaid – which will shed some light on the consolidation environment in the prepaid space.
For TSYS, the move is transformational in its move to grow its business while complementing its foothold in prepaid processing, according to Philip W. Tomlinson, TSYS’s chairman of the board and CEO.
“[The acquisition] enables us to meet our strategic goals of diversifying our business, being a more innovative payment solutions provider and expanding our role within an area of payments that is expected to grow at a 20% annual rate over the next four years,” said Tomlinson in a statement.
This is a major deal in the prepaid industry, positioning TSYS, the huge processor, to maintain market share amidst strong competitors like Square while accelerating the growth of NetSpend, which should place even more pressure on competitors like Green Dot.
With NetSpend’s extremely extensive distribution network of over 62,000 locations, 130,000 reload locations, and more than 2.4 million accounts, TSYS and NetSpend are solidifying themselves as one of the industry’s biggest players.
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