ATLANTA--(BUSINESS WIRE)--Jan. 31, 2006--NOVA Information Systems
(NOVA), a wholly owned subsidiary of U.S. Bancorp (NYSE:USB), today
announced that it has entered into a definitive agreement to acquire
the merchant processing business of First Horizon Merchant Services
Inc. (FHMS), a wholly owned subsidiary of First Tennessee Bank and a
part of First Horizon National Corp. (NYSE: FHN). This acquisition
involves approximately 53,000 merchant locations in the United States,
Canada and Puerto Rico, 400 employees, and FHMS systems, sales and
operations centers based in Englewood, Colo., and Orlando, Fla.
FHMS is the second largest acquirer of hospitality transactions in
the United States, and its portfolio also includes retail, restaurant,
healthcare and automotive businesses. New merchant services will be
marketed through a direct sales force and through a strategic alliance
referral relationship with First Horizon National Corporation's 208
banks located in Tennessee, Mississippi, Virginia, Georgia and Texas.
The credit and debit card processing volume from this agreement is
expected to add approximately $25 billion annually to NOVA's
processing business. Under the terms of the agreement, the transaction
carries an initial purchase price of approximately $433 million, with
the potential for a subsequent payment based on performance-related
"First Horizon is a well-established and highly recognized market
leader with a history of strong performance and solid growth," said
Pamela A. Joseph, chief executive officer, NOVA Information Systems.
"Their impressive national merchant base, specialized product
portfolio, network infrastructure and experienced staff complement our
existing business and expand our reach into the travel and
entertainment sector. We are honored that they have selected NOVA as a
trustworthy partner to serve their clients' needs."
"Historically it has been important for us to be a processing
solution company, one that creates value at every constituency level
with unique internally controlled products," said Ronald R. Nation,
president of First Horizon Merchant Services. "With the existing
global processing attributes of NOVA, we can now provide uniform
solutions to our global clients. More importantly, no other Visa or
MasterCard licensee that I know of can do what we now can do around
the world exclusive of reliance on third-party service bureaus."
The deal is expected to close in the first quarter of 2006.
Additional information regarding this transaction can be found on U.S.
Bancorp's website. To access the information, go to www.usbank.com and
click on "About U.S. Bancorp" and then "Investor/Shareholder
Information." The link to a slide presentation can be found under both
"Press Releases" and "Webcasts and Presentations."
Pamela A. Joseph, chief executive officer, NOVA Information
Systems, will host a conference call to discuss the transaction on
Wednesday, February 1, 2006, at 9:00 am (EST). The call will be
available by telephone or via webcast at www.usbank.com. To access the
conference call, please dial 800-795-1259 and ask for the NOVA
conference call. Participants calling from outside of the United
States, please dial 785-832-1523. For those unable to participate
during the live call, a recording of the call will be available
approximately one hour after the conference call ends on Wednesday,
February 1, 2006, and will run through Wednesday, February 8, 2006, at
11:59 p.m. (EST). To access the recorded message, please dial
888-276-5315. If calling from outside of the United States, please
dial 402-220-2332. After February 8th, a recording of the call will
continue to be available via webcast on the U.S. Bancorp website at
About First Horizon Merchant Services
First Horizon Merchant Services is part of First Horizon National
Corp. (NYSE:FHN), whose 13,000 employees provide financial services to
individuals and business customers through hundreds of offices located
in more than 40 states. The corporation's three major brands -- FTN
Financial, First Horizon and First Tennessee - provide customers with
a broad range of products and services including: capital markets, one
of the nation's top underwriters of U.S. government agency securities;
mortgage banking, one of the nation's top 20 mortgage originators and
top 15 servicers, which earned a top-10 ranking in customer
satisfaction from J.D. Power and Associates; and retail/commercial
banking, with the largest market share in Tennessee and one of the
highest customer retention rates of any bank in the country.
FHN companies have been recognized as some of the nation's best
employers by AARP, Working Mother and Fortune magazines. FHN also was
named one of the nation's 100 best corporate citizens by Business
Ethics magazine. For more information, visit www.fhnc.com.
NOVA Information Systems, a leader in the payment processing
industry is a wholly owned subsidiary of U.S. Bancorp (NYSE:USB).
Combined, NOVA and its affiliates euroConex and Elan, provide global
merchant processing services to financial institutions and customers
in the United States, Canada, and Europe. NOVA offers integrated
payment processing services to more than 800,000 merchants. For more
information, visit www.novainfo.com.
CONTACT: NOVA Information Systems
NOVA Media Relations:
Michelle Graff, 678-731-5064
First Horizon Merchant Services
Ronald R. Nation, 303-268-2688
U.S. Bancorp Investor Relations
Judith Murphy, 612-303-0783
SOURCE: NOVA Information Systems