TSYS decided to sell out one of its subsidiaries



image Three weeks before delivering its earnings report for the third quarter of 2009, credit-card processor TSYS confirmed Monday it has sold one subsidiary and folded another into a third operation.

The company also acknowledged it is working to hold the line on personnel expenses.

The global third-party card processor, headquartered in Columbus, said it has completed a consolidation of its TSYS Prepaid operation into its TSYS Loyalty subsidiary, a move eliminating 25 positions at the Alpharetta, Ga., facility.

“There were some synergies there that we felt we could take advantage of,” said TSYS spokesman Cyle Mims. “They were both already in Alpharetta. They were both already in the same building. So we combined the business operations to streamline a few things there.”

TSYS Loyalty, which now employs 230, helps credit-card clients with rewards programs. TSYS Prepaid focused on developing a customer base for stored-value cards.

On Monday, the Alpharetta operation had 10 job listings on the TSYS career Web page.

In a separate deal, Mims said the company has sold Norcross, Ga.-based TSYS Debt Management to an undisclosed party.
“All of what we can report will be included in the earnings release,” said Mims, only noting the sale came at the end of August.
TSYS Debt Management is a bill-collection and bankruptcy-processing business.

TSYS had reported in its first- and second-quarter earnings reports that it was looking to unload the operation and had an interested buyer.

“The business model, the synergy, the margins have just not proven to be what we had originally planned and hoped for,” Phil Tomlinson, TSYS chairman and chief executive officer, said in a previous conference call with stock market analysts. Amid pressure on its revenues and profits, TSYS has been looking for ways to keep a tight grip on expenses, Mims acknowledged. That includes costs related to personnel, although he said there have been no wholesale layoffs.

“What we’ve been doing is trying to carefully manage expenses through attrition,” he said. “When people are leaving, we’re looking long and hard at whether you replace that person or not. But in the same vein, we’ve also been adding resources to the growth areas of our company.”

TSYS has about 4,400 on the payroll in Columbus and 8,000 worldwide. It does business in the U.S., Europe, Asia and Latin America.

The company will release its third-quarter financial data on Oct. 27.

Source http://www.ledger-enquirer.com/news/story/864316.html

ECJ




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