NEW YORK (TheStreet) -- Shares of Heartland Payment Systems Inc. (HPY) are higher by 7.78% to $48.93 on Wednesday afternoon, following the company's announcement it's acquiring TouchNet Information Systems Inc. for $375 million.
Heartland is a offers customers bankcard payment processing services and TouchNet is a privately held integrated commerce solutions provider to higher-education institutions.
The company expects the transaction to be "slightly accretive in 2014", and add at least 30 cents per share in 2015.
Must Read: Warren Buffett's 25 Favorite Stocks
Heartland said the deal will expand its growth profile and make the company the largest provider of integrated commerce solutions to the higher-education market.
Separately, TheStreet Ratings team rates HEARTLAND PAYMENT SYSTEMS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate HEARTLAND PAYMENT SYSTEMS (HPY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."