STRATEGIC PARTNERS
February 20, 2002
DALLAS -- Paymentech, the third-largest acquirer of bankcard transactions in the U.S., announced today that it has agreed to acquire the merchant processing business of Mellon Bank.
Mellon Bank and Paymentech also agreed to an exclusive marketing and referral agreement under which the parties will market Paymentech's processing services to Mellon Bank's merchant customers through Mellon's network of nearly 450 retail offices and cash management and corporate banking groups.
With this latest acquisition, Paymentech will add more than 46,000
merchants with approximately $5.3 billion in annual bankcard sales
volume. Mellon directly services a broad range of retailers and numerous government agencies, as well as processes for merchants through independent sales organizations and agent banks.
The acquisition, expected to be completed during the fourth quarter of
this year, is subject to conditions typical for such transactions, including necessary regulatory approvals. Terms of the deal were not disclosed.
This sale does not affect Mellon's substantial electronic funds transfer processing business, which includes ATM terminal driving, debit card processing, off-line debit processing businesses and smart card stored value programs.
