C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW), today announced that it has reached a definitive agreement and has sold its payment services business, T-Chek Systems, Inc. (“T-Chek”), to Electronic Funds Source, LLC (“EFS”) for $302.5 million in cash. EFS acquired the assets and assumed certain liabilities of T-Chek. T-Chek is a business-to-business provider of spend management and payment processing services. T-Chek’s technology supports a variety of funds transfer, vendor payment, fuel purchasing, and online expense management tools. Historically, T-Chek has focused on the transportation industry with its major customer segments including the truckload, less-than-truckload, and private fleet industries, and truck stop chains. Due to changes in the industry, T-Chek has expanded its business further into the financial services sector, to include funds transfer and expense management for other industries through its MasterCard® product. “We are proud of T-Chek’s success and of T-Chek’s employees, who built a very strong business with a long track record of growth,” said John P. Wiehoff, chief executive officer of C.H. Robinson. “As the payment services industry continues to consolidate and evolve, scale and alignment with the financial services sector are becoming increasingly important. EFS is an excellent organization and we felt, for T-Chek’s long term success, that strategically it was the right time for T-Chek to join forces with EFS.” “T-Chek is a high quality company with strong customer relationships, very good technology, and talented, dedicated employees,” said Scott Phillips, president and chief executive officer of EFS. “The acquisition will provide us with a unique opportunity to add a successful business and outstanding team to our portfolio. We look forward to welcoming the business and its employees into the EFS organization.” T-Chek has 190 employees, most of whom are based in Minnesota. EFS expects to retain a Minnesota presence, and T-Chek’s management will assume key roles in the combined organization. Prior to the sale, C.H. Robinson purchased services from T-Chek, including services to advance funds to C.H. Robinson’s contract carriers, and employee expense card services. C.H. Robinson has entered into a contract to purchase those services from EFS.
T-Chek had annual payment services net revenues of $49.3 million and operating income of $24.6 million in 2011. T-Chek has been a subsidiary of C.H. Robinson since 1984.
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