News

First Data to sell portions of card processing, ATM management business in Europe

May 30, 2018

SIA, a European provider of payment infrastructure and services, has signed an agreement with First Data Corp. to acquire First Data's card processing businesses in parts of Central and Southeastern Europe for 375 million euros ($433 million).

In 2017, these businesses generated combined revenues of approximately 100 million euros ($115.5 million) for First Data, according to a press release.

The acquisition by SIA covers card processing and production, call center and back-office services for 13.3 million payment cards accounting for 1.4 billion transactions annually. The sale also includes management of ATMs and POS terminals in several regions.

Businesses included in the deal are located in 7 countries, primarily: Croatia; Czech Republic; Greece; Hungary; Romania; Serbia; and Slovakia.

"This transaction aligns with our focus on portfolio management," First Data chairman and CEO Frank Bisignano said in the press release. "While these are solid businesses, aspects of their operations are no longer core to our strategy, and this sale allows us to deploy the proceeds to create value in line with our capital allocation priorities. We believe we have found an excellent partner for this transaction as SIA's integrated payment infrastructure and service offerings and presence across Europe make it the perfect home for these businesses and puts our former customers in capable hands."

The deal, which includes the transfer of about 1,400 First Data employees to SIA, is expected to close in Q3.