TSYS TO ACQUIRE MAILTEK, INC.
TSYS TO ACQUIRE MAILTEK, INC. COLUMBUS, Ga., April 13 /PRNewswire/ -- Total System Services,
Inc. (TSYS/R/) (NYSE: TSS) today announced it had entered into an agreement to acquire Mailtek, Inc. ("Mailtek"), an Atlanta-based company.
Mailtek is a full-service direct mail production company offering data processing, computer output microfiche, list management, plastic card embossing, laser printing and mailing services. The company provides these data processing and financial services to financial institutions, health care companies, the airline industry and the leisure industry. Under the terms of the agreement, TSYS will exchange shares of its common stock for all of the shares of Mailtek. The exchange ratio will be determined by a floating scale and portions of the purchase price will be contingent on the performance of Mailtek over the next four years. It is anticipated that the transaction will involve approximately 125,000 shares of TSYS common stock and it is also anticipated the portion of Mailtek's net income realized in 1992 and in future years will enhance TSYS's earnings per share. Ownership of TSYS by Synovus Financial Corp. (NYSE: SNV) will remain at a level above 80 percent. The acquisition is expected to be completed within 90 days, subject to the approval of various regulatory agencies. Upon completion of the transaction, Mailtek will operate as a wholly owned affiliate of TSYS. Commenting on the announcement, Kenneth E. Evans, vice chairman of the board of TSYS, stated: "The merger of Mailtek with TSYS will expand our products and services to a broader group of existing and potential customers. This acquisition is an excellent beginning in our strategic plan to expand and diversify TSYS in lines of business that are compatible with the services we now provide our customers." TSYS is the second-largest bankcard and private label card processing company in the world. The company is based in Columbus, Ga., and provides card issuing institutions with a comprehensive on- line system of data processing services marketed as THE TOTAL SYSTEM(sm). TSYS serves 110 card issuing customers in 34 states, Puerto Rico and Canada, representing 27 million cardholders and 314,000 merchant accounts. -0- 4/13/92 /CONTACT: Kenneth E. Evans, vice chairman of the board, 404-649-4457, or James B. Lipham, chief financial officer, 404-649-2262, both of Total System Services/ (TSS SNV) CO: Total System Services, Inc.; Mailtek, Inc. ST: Georgia IN: FIN SU: TNM
BR-BN -- AT008 -- 7695 04/13/92 11:23 EDT
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|Date:||Apr 13, 1992|
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