New York, NY 1 September 2004 LAWFUEL – Best for law, law news, legal news, law research –Attorneys from the Private Equity practice of Kirkpatrick & Lockhart LLP (K&L) advised Clarity Payment Solutions in its August 3, 2004 sale to TSYS for $53 million in cash. Clarity will continue as a subsidiary of TSYS and has been renamed TSYS Prepaid, Inc.
The strategic combination joins the processing systems and global reach of TSYS with Clarity’s innovation in prepaid cards and related payment processing technology to offer more comprehensive prepaid card solutions. TSYS Prepaid’s capabilities extend into a number of emerging prepaid card markets, including the healthcare, payroll, claims, and promotions sectors.
Anil D. Aggarwal, CEO of TSYS Prepaid and co-founder of Clarity, said: “Joining with TSYS gives us the scale and market strength to take advantage of the rapid movement away from paper intensive payment systems to more efficient and cost effective electronic payment platforms.”
K&L partner Robert Zinn, head of the firm’s Private Equity practice and lead counsel to Clarity, commented: “This transaction represents one of the first strategic acquisitions in the prepaid card business. We are seeing increasing venture, strategic and capital market interest in these kind of companies, which reflects the perception that this market is likely to experience a lot of growth.”
TSYS Prepaid, a wholly owned subsidiary of TSYS (NYSE: TSS), is a leading provider of prepaid card solutions that utilize the Visa®, MasterCard®, EFT and ATM networks. These solutions are powered by a flexible proprietary processing platform that is specifically designed for the prepaid market. TSYS Prepaid offers expert solution deployment services, from facilitating sponsoring bank and payment network approvals to transaction processing and program management. TSYS Prepaid provides turnkey solutions complete with online, real-time administration and reporting and other unique system features that are vital to the prepaid market.
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