HOUSTON -- The PULSE EFT Association, the nation's fourth largest EFT network, and Cincinnati-based Money Station have agreed in principle to a merger that will create a new network that encompasses 20 states in the Central, South, Midwest and Southwest regions of the U.S.
The transaction remains subject to satisfaction of various conditions, but both parties believe that a definitive agreement will be reached in the next few weeks. Financial terms were not disclosed. PULSE President and CEO Stan Paur will be president and CEO of the combined systems. Money Station will continue to function as a wholly owned subsidiary of PULSE.
The combined network will serve more than 2,500 member financial institutions and expects to process more than 50 million EFT transactions monthly.
Paur pointed out that the merger combines two networks that share the same philosophy and operating model.
"As with our acquisition of Gulfnet in 1997, PULSE intends that this transaction will result in lower cost and value-added service to the hundreds of current Money Station participants," Paur said. "In addition to reducing financial institutions' costs, the merger will deliver new benefits in terms of research, education and lobbying support. We share the belief that this union will result in a low cost, high quality network alternative controlled by the financial industry that is both needed and strategically important."
Combined, PULSE and Money Station will have 53,500 ATMs and 313,000 POS terminals, most of which are in the 20 core-coverage states including Tennessee, Colorado, Texas, Minnesota and Pennsylvania.
PULSE is owned by 2,100 financial institutions including Bank of America Corp., Wells Fargo & Co., and Chase Manhattan Corp. Money Station is owned by Dollar Bank, Fifth Third Bancorp., Firstar Corp., Huntington National Bancshares, and Mellon Financial Corp., but has a membership of 560 banks.
