TSYS Purchases Enhancement Services Corporation
Columbus, Ga., April 28, 2003 - TSYS® announced today that it has acquired Enhancement Services Corporation (ESC) which provides targeted loyalty consulting and travel, as well as gift card and merchandise reward programs to more than 40 national and regional financial institutions in the United States, including two top-ten banks. Steven Wilson, ESC president and CEO, will continue to manage the day-to-day operations of the wholly owned subsidiary and will report to TSYS Executive Vice President M. Troy Woods.
The integration of ESC's loyalty solutions with TSYS' processing systems provides marked advantages by adding distinct value differentiation for TSYS and its clients.
"Loyalty programs are proven to increase receivables, increase transactions and strengthen customer relationships. TSYS clients outsource those programs to other vendors today, and they have indicated that they would rather consolidate that business with TSYS. This acquisition fulfills a strategic objective, making it possible for TSYS to offer a fully integrated solution that builds on loyalty programs inherent in our processing systems," said Woods.
Of the 617 million credit cards in use in 2002, only a small percentage of the MasterCard and Visa cards participated in a points-based loyalty program. Since 2001, these programs have continued to grow rapidly. Research indicates that cardholders who use a loyalty program spend four to five times more than cardholders without loyalty programs.
"There are tremendous opportunities in the loyalty market. Because loyalty program management is not a core competency for most financial institutions, many actively seek a partner capable of providing comprehensive loyalty program management," said Wilson.
"Working with TSYS and ESC, our clients will be able to develop programs to drive acquisition, activation and retention of cardholders while increasing the average spend on the cards," said Richard N. Covington, director of business development for TSYS. "This addition to the TSYS family allows us to offer comprehensive loyalty program services to our clients. This will enable them to identify their best customers and take the first critical steps toward building long-term relationships."
About ESC:
Located in Roswell, Ga., Enhancement Services Corporation (ESC) is a leading provider of technology-based loyalty marketing solutions. ESC specializes in applications for the credit and debit card industry and ranks in the top three providers, hosting payment programs for more than 40 national and regional financial institutions in the United States.
About TSYS
TSYS (NYSE: TSS) (www.tsys.com) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe. Synovus (NYSE: SNV) (www.synovus.com) owns an 81-percent interest in TSYS. For more information, contact news@tsys.com.
Contacts:
Danita Gibson-Lloyd
TSYS Media Relations
+1.706.649.5578
dglloyd@tsys.com
Lars Holmquist ESC
+1.678.297.4370
+1.678.296.4835 cell
lholmquist@escloyalty.com.
Leo Berard
TSYS Investor Relations
+1.706.644.6081
leoberard@tsys.com