Printer Friendly

Concord EFS Acquires Payroll Processor.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 9, 1997--Edward A. Labry III, president of Concord EFS (NASDAQ/OTC: CEFT), 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 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 and electronic benefit transfer (EBT) acceptance to small retailers, supermarkets and convenience stores. 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
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Oct 9, 1997
Previous Article:Wonderware Announces Enterprise-Wide License Program For Unlimited Corporate Use of FactorySuite Software Modules; First Order Placed for $1.5...
Next Article:IPL's Articles Amendment Adopted; IPALCO Tender Offer for IPL Preferred Stock is Successful.

Related Articles
Concord EFS automates drivers' cash advances at truckstops.
Concord EFS, Inc. and Electronic Payment Services, Inc. Execute Merger Agreement.
Concord EFS, Inc. Announces Completion of Acquisition With Electronic Payment Services, Inc.
Concord EFS Announces Consolidation Plan Related to Recent Acquisitions.
Concord EFS Announces Public Offering Priced At $49.50.
Concord EFS Signs Agreement to Settle Previously Disclosed Lawsuit.
Ed Labry, Concord EFS President, to Succeed Dan Palmer as CEO in May 2003.
Concord EFS Executive to Present at Goldman Sachs Conference.
Concord EFS Appoints New Outside Director.
Fleet One Cards Now Accepted Through Concord EFS.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters