Brookfield-based financial services technology developer Fiserv Inc. announced today it plans to acquire a unit of Elan Financial Services for $690 million.
Elan, a division of U.S. Bancorp with $170 million in annual revenue, has agreed to sell its debit card processing, ATM Managed Services and MoneyPass program to Fiserv, pending regulatory approval. The transaction is expected to close in the fourth quarter.
Fiserv expects the addition of the Elan unit would enhance its debit card processing capabilities, while adding new mobile and digital payment options to its suite of products. MoneyPass is the second-largest fee-free network in the U.S., encompassing 33,000 ATMs.
“We continue to see opportunities for financial institutions to enhance the card-based payments they provide to their customers in an always-on, anytime access world,” said Jeffery Yabuki, president and chief executive officer of Fiserv. “This acquisition expands our capabilities and provides additional expertise, which together should enhance the value we provide our clients. We look forward to welcoming the Elan team to Fiserv.”
“We believe this sale is the right thing to do for the bank and our customers,” said Tim Welsh, vice chairman, Consumer Banking Sales and Support at U.S. Bank. “Our customers will now benefit from the long-term commitment Fiserv has for this business and its clients and U.S. Bank will benefit as we continue to reinvest in our core businesses.”
