Payments processor TSYS announced Monday (Dec. 18) that it plans to acquire Cayan, advancing its position as a provider for small and medium-sized businesses, including the PF and ISV markets.
Cayan is a payments technology provider focused on integrated payments solutions. It serves more than 100 integrated partners in the U.S., as well as more than 70,000 merchants.
“The acquisition of Cayan will bring additional unified commerce solutions to TSYS that will put the combined company in an even stronger competitive position to offer a broader set of value-added products and services to partners and merchants,” Emily Edmonds, senior director of communications at TSYS, told PaymentFacilitator.com.
TSYS also owns ProPay, which offers a dedicated payment facilitator solution.
How TSYS will combine the capabilities from these two acquisitions remains to be seen.
“We will be looking at all synergies between TSYS and Cayan in the coming months and will have more news to share post close,” Edmonds said.
Rick Oglesby, president of AZ Payments Group, acknowledged the significant investments merchant acquirers have made in similar capabilities, and called the deal a “smart move” for TSYS.
“There’s been a big run on integrated payments companies, and Cayan was one of the largest and most differentiated still available,” he said.
“Not only does this give TSYS more assets to compete with Vantiv, Global, and First Data in the integrated payments market, but it also gives TSYS a level of product differentiation that others can’t currently match. In a market where the job is to disappear into the background through white-labeled products, having a solution that can differentiate the processor makes a difference,” Oglesby continued.
“The acquisition of Cayan strategically complements our merchant goals to become a leading payment solutions provider to small and medium size businesses in the U.S. by delivering ‘best in class’ services and solutions.” M. Troy Woods, chairman, president and chief executive officer, for TSYS, said in a press release.
“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.”
The transaction is valued at about $1.05 billion and is expected to close early next year, the company said.
This story has been updated to include comments from Edmonds and Oglesby.