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Information technology services industry

Metavante Corp. Acquires NYCE for $610 Million

Strategic Insights

— 2 min read

Metavante Corp., a payments processor owned by Marshall & Ilsley Corp., has announced a deal to buy NYCE Corp. for $610 million in cash. The acquisition, which is subject to regulatory approval, comes after 22 firms expressed serious interest in buying NYCE from First Data Corp. The deal is seen as a strategic move for Metavante, which will gain access to NYCE's PIN-debit brand used by 2,100 financial institutions.

Metavante's CEO, Frank Martire, says that NYCE will operate as a separate subsidiary and that its existing governance system will remain intact. The acquisition is expected to plug a hole in services that Metavante can offer clients. With this deal, Metavante will gain a significant presence in the PIN-debit market, expanding its customer base and increasing its revenue.

Metavante has 1,200 financial-institution processing clients and 38,000 merchant customers, while NYCE drives 11,000 ATMs and processes transactions for 600 financial institutions. The acquisition is expected to have a positive impact on Metavante's revenue and market share in the debit industry.

Key Takeaways:

  • Metavante has agreed to buy NYCE Corp. for $610 million in cash, subject to regulatory approval.
  • The acquisition is seen as a strategic move for Metavante, gaining access to NYCE's PIN-debit brand used by 2,100 financial institutions.
  • Metavante's CEO, Frank Martire, says that NYCE will operate as a separate subsidiary and that its existing governance system will remain intact.
  • The acquisition is expected to plug a hole in services that Metavante can offer clients.
  • Metavante has 1,200 financial-institution processing clients and 38,000 merchant customers.
  • NYCE drives 11,000 ATMs and processes transactions for 600 financial institutions.
  • The minority shareholders of NYCE, which include Citigroup Inc., HSBC Holdings PLC, JP Morgan Chase & Co., and Bank of America Corp., will receive $221 million from the sale.
  • First Data Corp. will receive the remaining $389 million.

Statistics:

  • $610 million: The purchase price of NYCE Corp. agreed to by Metavante.
  • $221 million: The amount to be received by NYCE's minority shareholders from the sale.
  • 64%: The share of NYCE owned by First Data Corp.
  • 9,000: The number of ATMs driven by Metavante for financial institutions.
  • 38,000: The number of merchant customers of Metavante.
  • 2,100: The number of financial institutions using NYCE's PIN-debit brand.
  • 11,000: The number of ATMs driven by NYCE.
  • 600: The number of financial institutions processed by NYCE.

Sources:

  • "Metavante to Buy NYCE in $610 Million Deal" - ATM&Debit News
  • "Metavante to Buy NYCE" - Thomson Media Inc.
  • "Metavante Acquires NYCE for $610 Million" - Card Forum

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