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Information technology services industry

Metavante Acquires NYCE Corporation for Approximately $610 Million

Strategic Insights

— 2 min read

Metavante Corporation, a leading provider of electronic funds transfer and card solutions, has signed a definitive agreement to acquire NYCE Corporation, the nation's second-largest electronic funds transfer network, for approximately $610 million in cash. The acquisition is subject to regulatory approvals and other customary conditions, and Metavante expects the transaction to close in the third quarter of 2004. The acquisition will enhance Metavante's electronic funds business and provide a new piece of the payment services solution set, expanding its capabilities to exchange, route, and settle electronic payments on behalf of financial institutions and consumers.

Key Takeaways:

  • Metavante will acquire NYCE Corporation, the nation's second-largest electronic funds transfer network, for approximately $610 million in cash.
  • The acquisition is subject to regulatory approvals and other customary conditions, and Metavante expects the transaction to close in the third quarter of 2004.
  • NYCE had 2003 revenue of approximately $143 million and net income of approximately $30.7 million.
  • The transaction is expected to be approximately neutral to M&I's earnings per share in 2004 and accretive in 2005.
  • Metavante will serve the domestic and international markets with NYCE's industry-leading PIN-debit payment products, which provide shared network services for ATMs, online debit point-of-sale, and electronic benefits transfer transactions.
  • The combined company expects to serve 23 million ATM and debit cardholders, process over 235 million monthly EFT transactions, and drive over 20,000 ATMs.
  • NYCE's EFT processing business provides real-time processing services that support ATM management and monitoring services, gateway access, and debit card issuance and authorization solutions.
  • Metavante expects to leverage NYCE's comprehensive product offering to the combined customer base and drive continued growth in card-based payment transactions and other product markets.
  • The acquisition will not have any material breach of security of any Metavante/NYCE's systems.

Statistics:

  • The acquisition is valued at approximately $610 million.
  • NYCE had 2003 revenue of approximately $143 million and net income of approximately $30.7 million.
  • The combined company expects to serve 23 million ATM and debit cardholders.
  • The combined company expects to process over 235 million monthly EFT transactions.
  • The combined company expects to drive over 20,000 ATMs.
  • The transaction is expected to be approximately neutral to M&I's earnings per share in 2004 and accretive in 2005.

Sources:

  • NYCE Corporation press release, dated [undisclosed]
  • First Data Corporation press release, dated [undisclosed]
  • Metavante Corporation press release, dated [undisclosed]
  • Metavante Corporation website, dated [undisclosed]
  • First Data Corporation website, dated [undisclosed]
  • NYCE Corporation website, dated [undisclosed]
  • M&I's Annual Report on Form 10-K for the year ended December 31, 2003, under the heading "Forward-Looking Statements"

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