US paytech Elan sold to Fiserv for $690m
US banking tech heavyweight Fiserv has agreed to acquire the debit card processing, ATM managed services and MoneyPass surcharge-free network of Elan Financial Services, a unit of US Bancorp, for $690 million.
As exclusively reported by FinTech Futures last month, Elan was up for sale with Fiserv, Finastra and FIS vying for the paytech firm.
The acquired business has revenues of more than $170 million.
Fiserv says the acquisition will help it “build on the growth of its card services business by expanding its suite of solutions in key areas such as ATM managed services”.
Also, MoneyPass, the second largest surcharge-free network in the US with access to 33,000+ ATMs nationwide, will “further enhance its market position”.
Fiserv will offer Elan clients additional services, including risk management solutions, Accel debit payments network and enhanced debit platform capabilities.
This deal, however, does not include the Elan credit card issuing and corporate payments businesses, which are also US Bancorp units.
The transaction is expected to close in Q4 this year.
“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,” comments Jeffery Yabuki, president and CEO of Fiserv.
He adds his company “looks forward to welcoming the Elan team to Fiserv”.
Meanwhile, Tim Welsh, vice-chairman, consumer banking sales and support, US Bank, says the decision to sell Elan was “strategic”, following an evaluation of the business unit.
“We believe this sale is the right thing to do for the bank and our customers,” he says. Fiserv, he emphasises, has “the long term commitment” for the business and thus everyone will benefit from this deal.