Total Systems Maintains Fintech Investment With iMobile3 Buy

In an effort to fortify its position in the payments space, Total Systems Services, Inc. TSS has bought Jacksonville, FL-based iMobile3. The acquired company provides private-labeled, small business solutions within the payments industry.

iMobile3’s unique payments solutions such as mobile and tablet point of sale products integrated with value added services will enable Total Systems to provide best possible payments tools to its customers.

For the acquirer’s portfolio, iMobile3 is a perfect accretion considering its fully customizable bouquet of applications, designed specifically for every partner. These solutions from iMobile3 will aid all the partners and merchants of Total Systems to offer and utilize the value-added, revenue driving solutions like digital marketing and business analytics.

Via this acquisition, Total Systems intends to emerge as the leading payments solutions provider to small and medium size businesses in the United States.

The acquirer’s partners will be a beneficiary of this transaction as they will be able to use iMobile3’s collection of private-labeled products and payment technology expertise to build their own brand.

Total Systems is one of the companies trying to carve a niche for itself and stay ahead in the Fintech space. Notably, Fintech is the application of technology to the traditional financial services. The company attempts to play a leading role in the changing Fintech industry, making massive investments in technology and also through consolidation of suitable companies.

Total Systems has grown meaningfully over the years by means of a number of strategic buyouts. One notable integration was NetSpend in July 2013, which made Total Systems one of the largest program managers of dollars reloaded in prepaid cards, thereby enhancing its footprint in the U.S. prepaid card industry.

Ramping up technology, scale and distribution capabilities, Total Systems acquired TransFirst, a major U.S. merchant solutions provider, back in April 2016. Recently, the company completed the purchase of its remaining 15% ownership stake in the Central Payment Joint Venture, bringing the transaction to 100% level. Earlier in the year, Total Systems purchased payment technology firm Cayan to expand its offerings in small and mid-sized U.S. businesses for further boosting its merchant acquiring operation.

In a year’s time, the Total Systems stock has soared 46% compared with the industry’s growth of 39%.

 

Total Systems carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Mastercard Incorporated MA, FleetCor Technologies, Inc. FLT and WEX Inc. WEX.

While Mastercard sports a Zacks Rank #1 (Strong Buy), FleetCor and WEX  carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mastercard beat estimates in each of the last four quarters with an average positive earnings surprise of 8.89%.

FleetCor Technologies surpassed estimates in each of the trailing four quarters with an average beat of 2.94%.

WEX Inc. outpaced estimates in each of the four reported quarters with an average positive surprise of 2.56%.

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