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Subsequent Events
6 Months Ended
Jun. 30, 2013
Subsequent Events

Note 12 — Subsequent Events

On July 1, 2013, TSYS acquired all the outstanding voting stock of NetSpend for approximately $1.4 billion. NetSpend previously operated as a publicly traded company and is a leading provider of general purpose reloadable (GPR) prepaid debit cards, PayCards and related financial services to underbanked consumers in the U.S. The acquisition complements the Company’s existing presence in the prepaid processing space. The results of the newly acquired business will be reported by TSYS as a new operating segment titled NetSpend. NetSpend’s operations are material in relation to TSYS but no amounts are included in TSYS’ results for the periods ended June 30, 2013.

TSYS funded the acquisition with existing cash on hand, borrowings under its Existing Credit Agreement, proceeds from the issuance of the Notes, TSYS shares exchanged for NetSpend nonvested shares and options, and the Term Loan. The Term Loan was funded upon the consummation of the Merger. For more information regarding the Notes and the Term Loan, refer to Note 4.

In 2012, NetSpend had operating revenues of $351.3 million and operating income of $33.9 million. The Company’s acquisition accounting and purchase price allocation has not yet been completed for the NetSpend acquisition.

Management performed an evaluation of the Company’s activity through the date these unaudited financial statements were issued, and has concluded that, other than as set forth above, there are no significant subsequent events requiring disclosure.