December 18, 2017 / 1:52 PM / 6 months ago

UPDATE 2-Payment processor Total System Services to buy Cayan for $1.05 bln

(Adds details on deal, shares)

Dec 18 (Reuters) - Total System Services Inc (TSYS) on Monday said it would buy payment technology firm Cayan for $1.05 billion in cash to expand its offerings to small and mid-sized U.S. businesses.

The deal is expected to modestly benefit TSYS's net revenue growth and adjusted earnings per share in the first full year post closing, the payment processor said.

TSYS expects to realize a meaningful cash tax benefit as a result of the deal with Boston-based Cayan.

The combination will allow TSYS to serve about 730,000 merchant sites with an annual processing volume of more than $138 billion.

The deal is expected to close in the first quarter of 2018.

BofA Merrill Lynch and Greenhill & Co LLC are acting as financial advisers to TSYS, while Financial Technology Partners LP is the financial adviser to Cayan.

TSYS in January 2016 acquired U.S. merchant solutions provider TransFirst in an all-cash deal valued at about $2.35 billion. (bit.ly/2BG3LFJ)

Shares of Columbus, Georgia-based TSYS were marginally up in early trade on Monday.

Through Friday, TSYS's stock had surged 59 percent this year compared with the S&P 500 index's 19.5 percent climb.

Reporting by Nikhil Subba in Bengaluru; Editing by Martina D'Couto

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