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&lt;p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;Note 12 &amp;#x2014;
Subsequent Events&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;On July&amp;#xA0;1,
2013, TSYS acquired all the outstanding voting stock of NetSpend
for approximately $1.4 billion. NetSpend previously operated as a
publicly traded company and is a leading provider of general
purpose reloadable (GPR) prepaid debit cards, PayCards and related
financial services to underbanked consumers in the U.S. The
acquisition complements the Company&amp;#x2019;s existing presence in
the prepaid processing space. The results of the newly acquired
business will be reported by TSYS as a new operating segment titled
NetSpend. NetSpend&amp;#x2019;s operations are material in relation to
TSYS but no amounts are included in TSYS&amp;#x2019; results for the
periods ended June&amp;#xA0;30, 2013.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;TSYS funded the
acquisition with existing cash on hand, borrowings under its
Existing Credit Agreement, proceeds from the issuance of the Notes,
TSYS shares exchanged for NetSpend nonvested shares and options,
and the Term Loan. The Term Loan was funded upon the consummation
of the Merger. For more information regarding the Notes and the
Term Loan, refer to Note 4.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;In 2012,
NetSpend had operating revenues of $351.3 million and operating
income of $33.9 million. The Company&amp;#x2019;s acquisition accounting
and purchase price allocation has not yet been completed for the
NetSpend acquisition.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Management
performed an evaluation of the Company&amp;#x2019;s activity through the
date these unaudited financial statements were issued, and has
concluded that, other than as set forth above, there are no
significant subsequent events requiring disclosure.&lt;/font&gt;&lt;/p&gt;
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