First Marblehead Acquires TMS

NEW YORK ( TheStreet) -- The First Marblehead Corporation ( FMD) is acquiring KeyBank ( KEY)'s Tuition Management Systems from for $47,250,000 in cash.

TMS will be acquired by a wholly owned subsidiary of First Marblehead and will retain its identity, management and operations under the transaction, according to a company statement. The deal is expected to close before January 1, 2011.

TMS processes approximately $3.7 billion in tuition. The First Marblehead Corp. expects the acquisition to add $31 million in total revenues, to be cashflow positive during the first year and accretive to earnings in two years, the statement adds.

--Written by Maria Woehr in New York.

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