MEMPHIS Concord EFS Inc., the parent company of Star Systems Inc., Cash Station Inc., and MAC, has laid out a plan to consolidate its three electronic funds transfer networks and to eliminate 250 positions 10% of Concords work force in the process.
The three-part plan includes consolidation of data centers and other facilities to eliminate redundancies; reassignment or layoff of certain employees timed to coincide with the integration of redundant processing platforms; and functional integration of the Star organization, its most recent acquisition.
The company says it expects to incur a one-time charge, net of taxes, of $75 million to $90 million in the first quarter in conjunction with the consolidation.
While our recent acquisitions have added new technology and management talent, theyve also created areas of operating redundancies, said Dan Palmer, chairman and chief executive officer of Concord. Phase 2 of our multiyear plan is to take steps over the next 12 months to capture synergies within our operations.