NOVA Information Systems To Acquire Citibank® Card Acceptance In Europe
Acquisition Expands NOVA’s Global Acquiring Footprint; Doubles Merchant Count in Europe
ATLANTA and DUBLIN November 18, 2005 - NOVA Information Systems (NOVA), a wholly owned subsidiary of U.S. Bancorp (NYSE: USB), today announced that its European affiliate, euroConex, has entered into a definitive agreement to acquire Citibank® Card Acceptance (CCA), a major European card acquirer and a part of Citigroup, Inc. (NYSE: C). This strategic acquisition involves approximately 100,000 merchant locations in more than 31 countries, and CCA operations based in the United Kingdom, Germany and Belgium. This deal raises euroConex’s total portfolio to more than 200,000 merchant locations.
Citibank Card Acceptance has a significant payment processing presence in Europe’s fast growing multi-currency and cross-border acquiring business. The cross-border sector is expected to grow significantly, driven in part by EU regulations promoting greater cross-border competition.
The CCA acquisition is one of the largest in euroConex’s history, and is part of NOVA’s ongoing strategy to increase its footprint in Europe by providing bank partners and merchants across the region with a greater array of payment processing services including cross-border acquiring, multi-currency processing, and dynamic currency conversion solutions.
“This acquisition is our most significant move yet to expand our share of the pan-European acquiring market and gain a large piece of that growing business,” said Stuart C. Harvey, Jr., president, NOVA and chairman, euroConex. “CCA has demonstrated true success in the industry by building a very strong merchant portfolio. We are honored to serve their customers by offering a full portfolio of payment and value-added solutions that will keep them competitive in this rapidly changing market.”
“This transaction advances our goal to put our capital to work in our businesses with the greatest growth potential: credit card issuance, retail banking and consumer finance,” said Frits Seegers, chief executive officer, Europe Middle East and Africa, Citigroup Global Consumer Group. “When this transaction is completed, we are confident that customers will continue to receive high-quality service, as NOVA has consistently demonstrated their commitment to this business.”
Approximately 160 CCA employees will be employed by euroConex to continue to serve its customers from existing operations centers. The acquisition, which is subject to regulatory approvals, is expected to be completed by the end of 2005. Terms of the agreement were not disclosed.
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