US-based payment technology company TSYS has signed a deal to purchase NetSpend (NTSP) in an all cash transaction valued at nearly $1.4bn, which will boost its role in the field of payments.

As per terms of the transaction, for each common stock of NetSpend, its shareholders will receive $16 in cash.

Commenting on the deal, TSYS board chairman and chief executive officer Philip Tomlinson said that the acquisition is part of the diversification of its businesses, which will also strengthen its position as a modern payment technology provider.

Pending NetSpend shareholders and regulatory approvals as well as satisfying customary closing conditions, the transaction is likely to complete during June 2013.

Houlihan Lokey served as an exclusive financial advisor, while King & Spalding offered legal counselling to TSYS pertaining to the deal, while BofA Merrill Lynch and Fried Frank assisted NetSpend.

Operating as a general-purpose reloadable prepaid debit cards provider, NetSpend currently serves over 2.4 million accounts, of which 46% are direct deposit accounts with more than 500 retail distributors and more than 130,000 reload locations.

Headquartered at Columbus, TSYS provides merchant payment-acceptance technologies as well as services in credit, debit, prepaid, mobile and chip, among others to financial organisations in over 80 nations across the globe.