TSYS is beginning to integrate its $2.4 billion acquisition of
"Our goal is to optimize the capabilities, products and services across our combined entities that will enable our customers to rely on one single provider for all of their processing needs," said M. Troy Woods, TSYS' president and CEO, during Tuesday's earnings conference call. "We believe this is a key market differentiator."
While there is still significant integration work ahead to combine TSYS with TransFirst, which has strength in e-commerce and health care payments, Woods told investors the integration work and "synergy goals" are both on track.
Like many incumbent payment companies and processors, TSYS is diversifying to offer a broader set of merchant services to accommodate omnichannel shopping and other digital initiatives, and broaden the relationship the processor has with existing clients.
Today, more than 80% of TSYS' merchant net revenue is derived from direct channels, Woods said. "We believe the scale and diverse distribution network that we have created in our merchant business is one of the keys to our success," he said. "Our combined merchant businesses now gives us leadership positions in all three of our lines of business (North America, International and Merchant Services)."
The TransFirst acquisition follows the company's purchase of
For the quarter ending June 30, which includes a full quarter of TransFirst business, TSYS reported total revenue of $1.2 billion, an increase of 66.3% over last year's $692.7 million, and net revenue of $795 million, an increase of 28% over last year's $622 million.
"By almost any measure, our first quarter together has been very successful," Woods said.
