Payments processing provider Global Payments
has teamed up with Spain’s la Caixa bank to strengthen its presence
in Western Europe by providing merchant acquiring and payment
processing services in Spain.
Under the terms of the agreement and pending
regulatory approvals, Global Payments will pay €125m ($172m) to
acquire a 51% majority in the joint venture.
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La Caixa will retain the remaining 49% and
contribute its existing merchant acquiring business to the joint
venture.
The bank has also committed to a 20 year
marketing alliance in which it will refer its customers to the
joint venture for payment processing services in Spain and provide
sponsorship into the card networks. The transaction is expected to
close by 28 February 2011.
“We are thrilled that la Caixa has agreed to
partner with Global Payments,” said Paul R Garcia, chairman and CEO
of Global Payments, Paul R. Garcia.
“This joint venture clearly fits with our
strategic objective of expanding globally and specifically within
Western Europe while meeting la Caixa’s own growth strategy of
expanding its market share. Based on our singular focus on merchant
acquiring, we expect to grow the customer base by providing
increased sales resources and focus on the merchant acquiring
business.”
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By GlobalDataLa Caixa’s merchant acquiring business is
expected to generate revenue of over $60m from about 590m
transactions this year.
“By setting up a strategic alliance, la Caixa
will be joining forces with a world leader in Global Payments, to
drive forward market share growth and reinforce the quality of
service that it provides to merchants,” said Juan Maria Nin, CEO of
la Caixa.
“Furthermore, the deal represents an important
step for la Caxia in the international growth of its payments
systems business.”
