NOVA Information Systems, and Union Bank of California, the primary subsidiary of UnionBanCal Corporation announced the signing of definitive agreements providing for the purchase of Union Bank’s existing payment processing portfolio, and a long-term alliance marketing agreement for Union Bank’s referral business. NOVA will acquire Union Bank’s merchant accounts and will provide processing services, customer service and support operations to the bank’s 10,000 merchants. New merchant services referrals will be marketed through the bank’s 284 branches located in California, Oregon and Washington. The credit and debit card processing volume from this agreement is expected to reach $3 billion annually. The transaction is expected to close late in the second quarter 2004.
“NOVA’S premier services and tools will allow our merchant customers to take advantage of enhanced service levels and new value-added applications including electronic check conversion and electronic gift cards,” said Steve Glaser, executive vice president and head of consumer asset management at Union Bank.
“The model of forming alliances with financial institutions has proven to be beneficial for NOVA, its partners and their merchants,” said Pamela Joseph, president and chief operating officer, NOVA Information Systems. “As demonstrated recently both here and abroad, NOVA is a true partner that can quickly and seamlessly manage the transition of a merchant processing portfolio. We are able to deliver advanced solutions and services tailored to address the specific needs of a variety of merchants, from small retail and restaurant businesses, to large national chains, to online e-commerce retailers.”
About Union Bank of California, N.A.
Based in San Francisco, UnionBanCal Corporation is a bank holding company with assets of $42.5 billion at December 31, 2003. Its primary subsidiary, Union Bank of California, N.A. has 280 banking offices in California, 4 banking offices on Oregon and Washington and 21 international facilities. The company’s web site is located at [www.uboc.com].
NOVA Information Systems, a leader in the payment processing industry, is a wholly owned subsidiary of U.S. Bancorp (NYSE:USB). NOVA partners with financial institutions, independent sales organizations, associations, government agencies and community banks to offer integrated payment processing services to their merchants and retailers. NOVA’s products include credit and debit card processing services, software applications, electronic check conversion, gift card solutions and other value-added services to more than 650,000 merchant locations in the United States and Europe. For more information visit [www.novainfo.com].