Financial technology developer Fiserv has agreed to acquire the debit card processing services of Elan Financial Services, a division of US Bancorp.
The acquisition is valued at $690m and will see Fiserv attain Elan’s debit card processing, ATM Managed Services and MoneyPass surcharge free network. The acquired company has revenue of over $170m and Fiserv expects the transaction to be accretive to adjusted earnings per share in 2019.
By completing this deal, Fiserv is hoping to reinforce its value proposition, deepen its debit card processing and grow its mobile and digital payment capabilities.
Through the acquisition, Fiserv will be able to grow its card services by increasing its products such as ATM managed services. It will also add Moneypass, which is the US’ second-largest surcharge network, accessing over 33,000 ATMs.
Clients of Elan will also receive other services including risk management solutions, Accel® debit payments network and enhanced debit platform capabilities.
Elan’s credit card issuing, and corporate payments businesses were not part of this sale.
“We believe this sale is the right thing to do for the bank and our customers,†said Tim Welsh, vice chairman, Consumer Banking Sales and Support, U.S. Bank. “Our customers will now benefit from the long-term commitment Fiserv has for this business and its clients and U.S. Bank will benefit as we continue to reinvest in our core businesses.â€
Wisconsin-based Fiserv is a financial service and technology developer, offering tools for payments, banking, risk and compliance, customer management, and lending, among others.
Earlier in the year, Fiserv received a $395m investment from Warburg Pincus in exchange for a 55 per cent stake in the company. The partnership of the two will look to aid the develop of automotive loan origination and servicing products and the LoanServ mortgage and consumer loan servicing platform.
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