Netspend Pops on Acquisition
Netspend (Nasdaq: NTSP) surged over 29% Wednesday after Total System Services (NYSE: TSS) announced that it would acquire the company for $16 per share. Shares of Netspend hit a new 52-week high of $15.96 Wednesday.
With the deal, Total System Services seems to be betting that digital payments will continue to replace cash transactions.
Similar companies, such as Green Dot (NYSE: GDOT) also traded higher on Wednesday. Going forward, investors should keep an eye on the growing trend of alternative payment systems.
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