In a bid to consolidate its operations in Louisiana,
Heartland Payment Systems
) acquired Madisonville-based MCS Software for an undisclosed
MCS Software provides innovative school foodservice point-of-sale
(POS), back office and online payment solutions for over 4000
K-12 schools across the nation.
Heartland's sturdy financial position including a strong cash
balance supports its acquisition activities. As of 2013-end,
Heartland had cash and cash equivalents of $71.9 million,
escalating 48.5% from the 2012-end level. Also, retained earnings
of the company surged to nearly $36 million from $7.6 million
reported at the end of 2012.
The acquisition will add an outstanding software product to the
existing platform of Heartland and also provide the acquirer with
a new substantial customer base across the country. This will
help boost the inorganic growth profile of the company. The
combined operation of Heartland and MCS Software is expected to
improve and expand the school payments solutions that are offered
to children and parents in the current MCS school districts.
Moreover, the acquisition makes way for further expansion in the
growing POS technology and K-12 school nutrition industry for
Heartland, subsequently, driving the company toward a market
leading position. Heartland School Solutions of Heartland now
provides their service to 34000 K-12 schools across the nation,
which represents 35% of the public schools across the U.S.
Previously, in Sep 2013, Heartland purchased 66.7% of the
outstanding capital stock of Leaf Holdings, Inc. for a cash
consideration of $14.5 million. Leaf Holdings assists several
vertical-specific business applications at Heartland with their
cloud-based, software-as-a-service (SaaS), Point-of-Sale (POS)
system. In 2012 and 2013, Heartland has made four acquisitions
for a total cash transaction of $122.3 million.
Heartland presently carries a Zacks Rank #3 (Hold). Some
top-ranked stocks worth mentioning in the financial transaction
services industry include
Fidelity National Information Services, Inc.
Alliance Data Systems Corp.
). While Fidelity National sports a Zacks Rank #1 (Strong Buy),
Alliance Data and Fiserv hold a Zacks Rank #2 (Buy).
ALLIANCE DATA (ADS): Free Stock Analysis
FIDELITY NAT IN (FIS): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
HEARTLAND PAYMT (HPY): Free Stock Analysis
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