Warburg Pincus agrees to buy Electronic Funds Source

Warburg Pincus has agreed to acquire Electronic Funds Source LLC, which provides corporate payment solutions, from an investor group including First Data Transportation Services, Inc., CTP Holdings LLC and FJ Management Inc. Terms of the deal were not disclosed.

Press Release

Warburg Pincus, a leading global private equity firm focused on growth investing, today announced it has entered into a definitive agreement whereby one of its affiliates will acquire 100% of Electronic Funds Source LLC (“EFS” or “the Company”), a leader in innovative corporate payments solutions, from an investor group including First Data Transportation Services, Inc., CTP Holdings LLC and FJ Management Inc. Terms of the transaction were not disclosed.

EFS is a leading provider of innovative and customized corporate payment technology solutions aimed at helping companies increase efficiencies and grow bottom line performance. The Company’s payment solutions are universally accepted at over 11,000 EFS proprietary locations in North America and designed specifically to meet dynamic and competitive industry needs. With its corporate payments solutions, EFS leverages its best-in-class technology and flexible, customizable applications, to streamline and automate payments, helping companies grow their business while providing industry-changing purchase controls with its unique and integrated offerings.

“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 R. Phillips, EFS President and Chief Executive Officer.

“We believe there is a significant opportunity to build on EFS’ success and enhance and expand its fleet and corporate payments solutions. We look forward to partnering with Scott and the management team as the Company continues its impressive growth trajectory,” said Jim Neary, Managing Director and Member of the Executive Management Group, Warburg Pincus.

“The Company provides innovative payment solutions leveraging a best-in-class technology platform. EFS is extremely well positioned to continue its product innovation and strong momentum in this attractive market,” said Adarsh Sarma, Managing Director, Warburg Pincus.
The transaction, which is expected to close in the second quarter of 2014, is subject to customary closing conditions and regulatory approvals.

White & Case LLP and Harwell Howard Hyne Gabbert & Manner, PC served as EFS’ legal counsel. Cleary Gottlieb Steen & Hamilton LLP advised Warburg Pincus. Goldman Sachs, SunTrust Robinson Humphrey and Wells Fargo acted as financial advisors to EFS. Credit Suisse and Deutsche Bank acted as financial advisors to Warburg Pincus.

About EFS
Electronic Funds Source LLC (www.efsllc.com) is a leading provider of innovative and customized corporate payment technology solutions designed specifically to help its customers drive efficiencies and improve bottom line performance. Serving the industry for 50 years, EFS brings unparalleled service, customer-driven innovation, and leading technologies to make the industry better. 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. Led by industry veterans, EFS maintains its commitment to bettering the industry by developing new technology to deliver smarter payments, providing its customers with better financial controls.

About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $37 billion in assets under management. The firm’s active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds, which have invested more than $48 billion in over 700 companies in more than 35 countries.

Warburg Pincus has a long history of investing in the payments, financial technology and financial services sectors, which include current and past portfolio companies such as FIS Global, InComm, Wall Street Systems, Primerica, Santander Asset Management, Santander Consumer USA, Sterling Financial Corp and Webster Financial Corp. Other portfolio companies – both active and exited – include Aramark Holdings, Antero Resources, Bausch & Lomb, GrubHub, InTime Department, Neiman Marcus, Poundland and Ziggo.

The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, Sao Paulo and Shanghai. For more information please visit www.warburgpincus.com.

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