Warburg near $1 bln-plus deal for EFS

Target: Electronic Funds Source LLC

Price: More than $1 billion

Sponsor: Warburg Pincus LLC

The deal is a bet on the U.S. logistics industry, which relies on payment cards and payroll tools to control and automate spending, sister news service Reuters reported.

New York-based private equity firm Warburg Pincus has prevailed over other buyout firms in an auction for EFS, and a deal announcement could come this week, the sources said, cautioning that negotiations were still being finalized.

The sources asked not to be identified because the negotiations are confidential. Warburg Pincus and EFS declined to comment.

EFS offers a range of private-label cards and mobile applications for transportation companies and their employees that are accepted at more than 10,000 locations across North America, according to its website.

The Nashville, Tennessee-based company was created in 2011 with the merger of First Data Corp’s EFS transportation services business and Transportation Clearing House.

Greg Roumeliotis is a correspondent for Reuters in New York.