First Marblehead to buy TMS
First Marblehead Corp., a Boston company that specializes in providing student loan services to financial institutions, has agreed to pay $47.25 million to acquire Tuition Management Systems, a provider of outsourced tuition planning, billing, counseling, and payment technology services for colleges, universities, and elementary and secondary schools.
First Marblehead said it is buying Rhode Island-based Tuition Management Systems, or TMS, from KeyBank NA.
Last year, TMS processed about $3.7 billion in tuition and related payments from over 400,000 families, and on an annualized basis, TMS is expected to add about $31 million of total revenues to First Marblehead's operating results, First Marblehead said.
A First Marblehead press release included a statement from company chairman and chief executive Daniel Meyers.
"Schools are continually searching for ways to make the payment process simpler, more cost effective and more family-friendly," he said. "The products and services offered by TMS complement First Marblehead's education finance and loan processing capabilities. Together, the combined organization can help schools and families better access products and handle tasks that enhance educational affordability. TMS has an excellent reputation in the marketplace and the entrepreneurial founders of the company have built a stable, fee-based revenue stream that has been incredibly resilient."