Concord EFS Acquires Payroll Processor.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Oct. 9, 1997--Edward A. Labry III, president of Concord EFS EFS Encrypted File System (Microsoft Windows 2000) EFS Event Free Survival (survival rates in clinical trials) EFS Evangeliska Fosterlandsstiftelsen (Sweden) (NASDAQ/OTC: CEFT CEFT Czech Educational Foundation of Texas CEFT Competitive Evaluation Field Test CEFT Certified Electronic Funds Transfer ), announced today he has signed a letter of intent to acquire 100% of the capital stock of Pay Systems of America Inc., Nashville, Tenn., a full service payroll processor. The merger of the companies will be completed in a stock transaction subject to regulatory approval and other closing conditions. The acquisition will not present a material addition to the total consolidated assets of Concord EFS. Management does not contemplate any accounting charge off associated with the transaction. Dan Palmer, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Concord EFS stated, "This strategic move will allow us to market payroll services across our existing customer base and have a differentiating product to market to new accounts going forward." Palmer added, "We also can utilize our bank subsidiary, EFS National Bank, to keep payroll processing cost to a minimum, increase our bank deposits from payroll deposits and tax withholding accruals and market new bank accounts to employees of these payroll customers." Management believes the national market for payroll processing is in excess of 10 billion dollars. Third party processors currently serve approximately 40% of the total market (in payroll dollars), while the remaining 60% consists of businesses which continue to process payrolls in-house. Due to the implementation of the New Hire Reporting Requirements (effective Oct. 1, 1997) and the Electronic Federal Tax Payment System (effective July 1, 1998), small to medium size businesses (in terms of number of employees) are expected to begin switching to third party payroll relationships in order to comply with the new electronic filing and reporting requirements. Concord EFS provides electronic transaction authorization processing, settlement and funds transfer services in select niche markets. Concord's primary activity is card processing services, which provides credit card, debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. and electronic benefit transfer (EBT EBT See: Earnings Before Taxes ) acceptance to small retailers, supermarkets and convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. . Concord EFS also provides direct deposit accounts to employees of its customers through EFS National Bank, its largest subsidiary. CONTACT: Concord EFS Inc., Memphis Edward A. Labry, 901/371-8000 |
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