News

Breaking: U.S. Bank buys Genpass

May 10, 2005

MINNEAPOLIS and IRVING, Texas - U.S. Bank, a subsidiary of U.S. Bancorp (NYSE: USB), announced its purchase of Genpass Inc. May 10.

The sale includes Fort Washington, Pa.-based Genpass and its subsidiaries - Genpass Technologies, MoneyPass, MoneyMaker and Money Belt ATM networks.

Genpass, an ATM, EFT and debit-processing services provider for financial institutions, was founded in 2000.

The transaction makes U.S. Bank the nation's second-largest, third-party ATM processor, according to a news release, in addition to having the second largest bank-owned ATM network in the United States.

U.S. Bank did not disclose financial terms of the agreement but did note that approximately 350 Genpass employees will become employees of U.S. Bank as part of the acquisition.

"This transaction makes U.S. Bank a leader in every major payment processing business and creates a foundation for future growth," said Pamela Joseph, vice chairman of U.S. Bancorp, who leads the company's payment services businesses. "U.S. Bank has a long history of innovation and growth in the payment services industry and the acquisition of Genpass affirms our commitment to grow all aspects of the payments business. U.S. Bank brings scale, capital, expertise, and new products to the Genpass customer base, while maintaining the highest commitments to quality."

The Irving processing location and operating platform of Genpass will remain in Texas.

"Genpass has grown rapidly to become the second largest ATM processor in the United States and is also the owner of MoneyPass, one of the largest 'open' surcharge free networks in the United States," said Janet Estep, executive vice president for U.S. Bank Transaction Services, and manager of the Elan Financial Services business unit. "Genpass customers will continue to benefit from the high level of customer service, excellent products and technology delivered by Genpass, and U.S. Bank will bring new capabilities from our processing businesses as well as additional products through our correspondent banking division."

Elan Financial Services serves more than 2 million credit card holders, and backs more than 7,700 ATMs and 15 million ATM/point of sale cards. As a result of the acquisition, U.S. Bank will provide services for more than 40,000 ATMs, Estep added.

U.S. Bancorp holds $198 billion in assets, and is the sixth largest financial holding company in the United States. The company operates 2,377 banking offices and 4,654 ATMs in 24 states.