Fiserv, the global provider of financial services technology solutions, announced on Tuesday (Sept. 25) that it has agreed to acquire the debit card processing, ATM managed services and MoneyPass surcharge-free network of Elan Financial Services, a unit of U.S. Bancorp.
In a press release, Fiserv said the acquisition – in which it is paying about $690 million – further enhances the company's offering, deepens its presence in the debit processing market and expands the mobile and digital payment offering that it provides to consumers and businesses.
According to Fiserv, the acquired business has revenue of more than $170 million, and the company anticipates this transaction to be accretive to adjusted earnings per share in 2019. “We continue to see opportunities for financial institutions to enhance the card-based payments they provide to their customers in an always-on, anytime access world,” said Jeffery Yabuki, president and CEO of Fiserv. “This acquisition expands our capabilities and provides additional expertise, which together should enhance the value we provide our clients. We look forward to welcoming the Elan team to Fiserv.”
Via the deal, Fiserv will expand its suite of solutions in ATM managed services, which is a key area of growth for the company. It will also add MoneyPass, which it said is the second largest surcharge-free network in the U.S. with more than 33,000 ATMs across the country, to further expand its market position. The transaction, which is subject to regulatory approval and other customary closing conditions, is anticipated to close in the fourth quarter.
“We believe this sale is the right thing to do for the bank and our customers,” said Tim Welsh, vice chairman of consumer banking sales and support for 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.”