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Fifth Third Processing signs deal to buy National Processing

September 15, 2010

Fifth Third Processing Solutions, LLC, announced late yesterday that it has signed a definitive agreement to purchase National Processing Co., for an undisclosed price. Louisville, Ky.-based National Processing Co. is a portfolio company of GTCR Golder Rauner LLC, a Chicago-based private equity firm.

The deal between Fifth Third, which is based in Cincinnati and National Processing creates one of the world’s largest merchant-acquiring businesses in the United States, both companies said.   The two companies are expected to close the agreement in early November.

The combined businesses will be headquartered in Cincinnati and together, they will provide processing for more than 420,000 merchant locations in the United States, handling approximately $344 billion in actual merchant payments volume.

Adil Moussa, an analyst with Aite Group LLC, a Boston-based consultancy, said Fifth Third is changing its strategic direction. The company is focusing on smaller and medium-sizes merchants in the National Processing portfolio to leverage risk and increase margins, Moussa said.