Warburg Pincus to buy Electronic Funds Source
17 April 2014
US private equity firm Warburg Pincus today struck a deal to buy corporate payment services company Electronic Funds Source (EFS) in a deal reported to be in excess for over $1 billion.
Warburg Pincus is buying Tennessee-based EFS from an investor group including First Data Transportation Services, Inc, CTP Holdings, and FJ Management Inc.
EFS is a provider of customised corporate payment technology solutions designed specifically to help its customers drive efficiencies and improve bottom line performance.
''We believe there is a significant opportunity to build on EFS' success and enhance and expand its fleet and corporate payments solutions," said Jim Neary, managing director and member of the executive management group, Warburg Pincus. "We look forward to partnering with Scott and the management team as the Company continues its impressive growth trajectory.''
Adarsh Sarma, managing director, Warburg Pincus, said, EFS provides innovative payment solutions leveraging a best-in-class technology platform.
Its portfolio includes a suite of corporate and private-label purchasing cards; innovative cardless technology solutions; payroll solutions; money transfer solutions; back-office A/P and expense management solutions; and intelligent, real-time analytics to make payments smarter.
''TEFS is extremely well positioned to continue its product innovation and strong momentum in this attractive market,'' Sarma added.
The EFS card is accepted at over 11,000 locations across North America which allows a client to manage and control purchases, payroll, settlement, and cash advance
"We are excited to partner with Warburg Pincus and look forward to leveraging their deep expertise and strategic insights in the areas of payments and financial services. This transaction enables us to move forward as an independent company and focus on a wide variety of opportunities for growth to benefit our customers," said Scott Phillips, EFS president and CEO.