Message #16 From:
Stock News Bot Date: March 16, 2007 05:00:00 AM
WFC News First Data to Acquire Instant Cash Services(R) Business from Wells Fargo
DENVER & SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo Bank, N.A., a subsidiary of Wells Fargo & Company (NYSE: WFC), and First Data Corp. (NYSE: FDC) announced today they have signed a definitive agreement for First Data to acquire the Instant Cash Services® (Instant Cash) business, which includes the Instant Cash Network, from Wells Fargo. First Data will continue to operate the Instant Cash Network under the Instant Cash brand. Instant Cash Services provides debit card and ATM payment processing services for more than 500 community banks, credit unions, thrifts and non-financial institutions in 20 states. The transaction will not affect Wells Fargo’s ATM banking network of 6,700 ATMs in 23 states nor will it affect the company’s ranking as the nation’s #2 largest debit card issuer, with 18.7 million debit card accounts. Financial terms of the transaction were not disclosed.
“Instant Cash Services is a natural fit with First Data. We serve thousands of similar financial institutions nationwide, and this acquisition supports our strategy of securing transaction processing volume and integrating high quality, value-added products and services,” said Todd Strubbe, president of First Data Debit Services. “The Instant Cash Network participants will continue to receive the high-touch service and convenience they enjoy today, along with continued deposit-sharing and surcharge-free access to ATMs at Wells Fargo branch locations. As we move forward, Instant Cash customers will gain access to new and enhanced products to help them service, protect and grow their businesses.”
“Instant Cash Services has provided a valuable service to our financial institution customers for almost 30 years,” said Ed Kadletz, head of Wells Fargo’s debit card business. “After analyzing our customer needs and industry trends, we believe the best strategy is to sell the business to a company like First Data that can deliver a wider array of payment processing services to meet the growing needs of our customers. Wells Fargo and First Data have strong customer service cultures and, together, we’re committed to making this transition as smooth as possible for our customers.”
Wells Fargo will continue to participate in the Instant Cash Network and has agreed to recommend First Data’s processing services to its Global Correspondent Banking Group customers. "As a leading provider of correspondent banking products and services, Wells Fargo's alliance with First Data gives our correspondent bank customers access to even more products and solutions," Kadletz said.
The business was created in 1977 by Northwestern National Bank of Minneapolis, a predecessor of the former Norwest Corporation, to process payments for community banks and credit unions in the Upper Midwest. Instant Cash Services is a part of Wells Fargo Card Services, a division of Wells Fargo Bank, N.A. Its customers include community banks, credit unions, thrifts and non-financial institutions in 20 states including Minnesota, North Dakota, Montana, Arizona, Nebraska, Wisconsin, South Dakota, Colorado, Utah and Texas.
Wells Fargo & Company is a diversified financial services company with $482 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 6,000 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest credit rating from both Moody’s Investors Service, “Aaa,” and Standard & Poor’s Ratings Services, “AAA.”
First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide. Serving 4.9 million merchant locations, 1,900 card issuers and their customers, First Data powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. For more information, visit www.firstdata.com.
