Heartland Payment Systems announced last week that it has completed its acquisition of TouchNet Information Systems, making the company the largest provider of integrated commerce solutions for higher education institutions.
The $375 million acquisition includes TouchNet’s software, customer base and existing employees, though it will continue to operate in Lenexa, Kan.
“I am extremely pleased to announce the acquisition of TouchNet, which is not only Heartland’s largest acquisition to date, but is also an excellent complement to our existing Campus Solutions business that will immediately improve our growth profile and contribute to our bottom line,” Robert O. Carr, the chairman and CEO of Heartland Payment Systems, said when the acquisition was announced.
Heartland will acquire more than 600 TouchNet higher education clients serving over six million students—approximately one-third of all students enrolled in higher education institutions in the U.S.
“With the acquisition, Heartland can now offer campus business offices an end-to-end commerce solution that integrates the payment processing capabilities of Heartland into the U.Commerce payment system,” Michael A. Lawler, the president of the Strategic Markets Group of Heartland Payment Systems, said. “This creates new growth opportunities in a large and growing market where we have the strongest franchise and the leading share. [W]e believe our Campus Solutions business can sustain attractive revenue growth rates and use our scale to expand already attractive margins over time.”
The acquisition is expected to be finalized later in the year, subject to closing conditions.