CINCINNATI -- Fifth Third Bank's Midwest Payment Systems (MPS) has signed a definitive agreement to acquire 49 percent of the outstanding common and preferred stock of Universal Companies, a privately-held payment and e-commerce processor, headquartered in Milwaukee. According to Fifth Third, the investment gives both companies the resources they need to continue growing their complementary businesses.
Founded in 1992, Universal Companies has a client base of over 50,000 small- and medium-sized merchants. In 2000, Universal Companies processed over $4 billion in transaction volume, up from $3.2 billion in 1999. During its two most recently completed fiscal years, Universal Companies generated net revenues of approximately $73 million and $56 million, respectively.
"Having Fifth Third as a strategic investor gives us the capital and leverage we need to continue our rapid expansion," said Ken Biel, president and CEO of Universal Companies.
Barry L. Boerstler, executive vice president of MPS, said, "This investment gives us an opportunity to partner with a rapidly growing and innovative enterprise focusing on the smaller merchant market segment across the U.S."
Boerstler said the move, along with the pending acquisition of Old Kent Financial Corporation, will beef up the MPS presence in the Midwest, especially in Michigan and Illinois.
MPS, a subsidiary of Fifth Third Bank, processes more than five billion ATM, POS and e-commerce transactions per year and drives more than 10,000 ATMs.
