TransFirst Starts a Division to Focus on ISO Alliances

TransFirst, a Dallas-based processor, today announced it is forming a new division to focus on alliances with independent sales organizations. The new unit, called TransFirst Independent Sales Services, is headed by Nancy Newton, who holds the title of president of the division. Newton is a former Compass Bank and Paymentech LP executive. Her responsibility includes creating and implementing strategies to grow TransFirst's ISO program. “ISOs generate more than $100 billion in processing volume or the industry each year, and we have always sought opportunities to partner with strong ISOs, as they are an excellent resource for our business, helping us expand our geographical reach and penetrate key vertical markets,” said Thomas Rouse, chief executive of TransFirst, in a statement. TransFirst, which established itself as a major player in agent-bank processing with its 2002 acquisition of BA Merchant Services Inc., has been on the prowl to acquire ISOs and merchant-portfolios for some time, backed by a $135 million warchest from venture-capital firm GTCR Golder Rauner LLC. It is especially interested in ISOs serving specialized niches such as quick-service outlets, e-commerce, and health-care payments. Just last month, its acquisitions of Fifth Third Bank Processing Solutions' third-party merchant portfolio and of Newport Beach, Calif.-based Payment Resources International more than doubled the company's size on an annualized volume basis, vaulting it from $8.5 billion to a run rate of $18.5 billion.