DENVER — First Data Corp. has announced plans to acquire InComm, a marketer and distributor of stored-value products. Specific terms and conditions of the agreement were not disclosed, but the transaction is expected to be accretive to First Data.
The acquisition is expected to wrap in the second quarter of this year.
With more than $300 million in 2007 revenue and almost $8 billion in retail-sales transactions processed in 2007, InComm is one of the United States' largest distributors of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill-payment solutions.
"The combination of First Data and InComm propels us into having a holistic prepaid product suite that includes banking products, payroll solutions, closed and open loop gift cards and now expanded distribution," said Ed Labry, president of First Data Corp.'s USA division. "We look forward to leveraging InComm's expertise and robust retail network to offer end-to-end prepaid solutions to our retail customers around the world."
InComm's innovative product and technology advancements in the United States have positioned the company well for continued international expansion. InComm provides stored-value product marketing and technology solutions to international markets in Europe and Canada.
Brooks Smith, current president and chief executive of InComm, will become the leader of First Data's Global Prepaid Services division when the transaction closes.
"First Data's global reach, unmatched scope of solutions and commitment to service excellence will not only enable us to enter new international markets, but also help to expand distribution and deliver innovative prepaid solutions to the small and mid market," Smith said.
