National Bank of Canada and Global Payments Form Strategic Alliance for Marketing Merchant Products and Services
Montreal, 27 June 2001 -
The National Bank of Canada (TSE:NA) and Global Payments Inc. (NYSE:GPN) announced today that they have agreed to form a ten-year alliance for marketing merchant payment-related products and services to National Bank's customers. As part of this agreement, which is subject to normal regulatory approvals, National Bank's merchant card services business will be acquired by Global Payments for a purchase price of approximately $72 million subject to any applicable adjustment on closing. National Bank will market Global Payments' merchant payment-related products and services to its customer base of small and medium-sized enterprises and large corporations.
National Bank is Canada's second largest supplier of MasterCard merchant card services and is also a leading Canadian online debit acquirer. Global Payments is a leading North American payment processing and merchant acquiring company. "This strategic alliance will enable the National Bank to remain active in this fast-changing sector of activity and to continue offering competitive products and services to its many merchant clients", explained Réal Raymond, President - Personal and Commercial Bank at the National Bank of Canada.
"It is significantly important to Canadian merchants that they have enhanced convenience and simplicity for all of their credit and debit processing needs, including the ability to deal with one company for both MasterCard and Visa acceptance," said Global Payments' President and CEO, Paul R. Garcia. "This transaction also marks another key milestone in our Canadian growth strategy targeted towards enhancing revenue and earnings growth opportunities."
National Bank of Canada (TSE:NA) is an integrated group whose mission is to provide comprehensive financial services to consumers, small and medium sized enterprises and large corporations in its core market, while offering specialized services to its customers elsewhere in the world. It has assets of over $76 billion and, together with its subsidiaries, employs some 16,700 people. The Bank's shares are listed on the Toronto Stock Exchange.
Global Payments Inc. (NYSE:GPN) is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada and the United Kingdom. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.
This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, the ability to consummate and integrate acquisitions, and other risks detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.