Metavante buys European debit, prepaid processor for $58 million

Metavante buys European debit, prepaid processor for $58 million
Tags: Bank / Credit Union, Debit / Credit, EFT Networks, North America, Other, Prepaid / Stored Value / Gift Card, Transaction Processing
January 9, 2008

MILWAUKEE — Metavante Technologies Inc., provider of banking and payments technology, has acquired London-based Nomad Payments Ltd., which provides prepaid and debit-card processing and licensed software for $58 million.

According to a news release, Nomad now operates as Metavante Technologies Ltd., part of the Metavante International Group.

The acquisition is expected to add approximately one percent to Metavante's 2008 revenue and have no significant impact on the company's profitability in 2008.

Nomad provides processing services for many different types of European payment providers, including gift cards; money share cards, which enable individuals to provide cash to relatives living, studying or traveling abroad; and general purpose prepaid cards that can be used as an alternative to a bank account.

"Acquiring Nomad presents Metavante International Group with the opportunity to establish a European center of operations, with a blue-chip client base, multicurrency capabilities, high volume processing platform, proven business model and an established European sales channel," said Frank R. Martire, Metavante's president and chief executive.

Nomad was established in 1991 as a card-payments software provider, establishing its payment division in 2005. Debit and prepaid card processing clients include the Bank of Ireland, Clydesdale Bank, Newcastle Building Society, IDT Financial Services, and Tuxedo Money Solutions. Licensed software clients include Bank Zachodni WBK, the fourth largest bank in Poland, and ING Ukraine and Romania, BRD — Groupe SociÃ©tÃ© GÃ©nÃ©rale, and EFG Eurobank, which operates in Poland, Romania, Serbia and Ukraine.

Since 2000, Nomad was funded by a venture capital syndicate comprising Spark Ventures investing through Quester VCT plc, Quester 4 VCT plc and Quester Venture Partnership and Foresight Group investing through Foresight 4 VCT plc.

In the United States, Metavante Payment Solutions delivers electronic money movement through an integrated payments network, including an ATM/PIN-debit network in NYCE, mobile banking and payments delivered through NYCE, a check-image exchange network in Endpoint Exchange, online bill pay, healthcare payment solutions, a suite of payment cards and automated clearing house processing.