Total System Services Inc. has agreed to buy payment technology company Cayan in an all-cash transaction valued at approximately $1.05 billion.

Cayan, a portfolio company of Parthenon Capital Partners, provides technology-led acquiring services to more than 70,000 merchants and more than 100 integrated partners in the U.S.

Total System Services expects the transaction to add modestly to its net revenue growth and adjusted EPS in the first full year post-closing. The company's board has approved the transaction, which is expected to close in the first quarter of 2018, subject to regulatory approvals and other closing conditions.

Bank of America Merrill Lynch and Greenhill & Co. LLC are acting as financial advisers, and Alston & Bird LLP is acting as legal adviser to Total System Services. Financial Technology Partners LP is acting as financial adviser and Kirkland & Ellis LLP is acting as legal adviser to Cayan.