MasterCard has ankled Raj Seshadri as president, U.S. Issuers. Most recently, Seshadri was a managing director at Blackrock, leading the company’s iShares U.S. retail ETF business. At MasterCard, she will be responsible for managing and expanding the company’s partnerships with banks and credit unions across the U.S. market. Earlier in her career, Seshadri held roles…
American Express signed an agreement to create a JV for its Global Business Travel division. American Express will share ownership of the JV with an investor group led by Certares, by which American Express will separate its GBT operations into a dedicated holding structure, which will include certain assets and liabilities that currently comprise GBT,…
American Express Company today announced that it has signed an agreement to create a joint venture for its Global Business Travel division (“GBT”). Under the agreement, American Express will share ownership of the joint venture with an investor group led by Certares. In the proposed transaction, American Express will separate its GBT operations into a dedicated holding structure, which will include certain assets and liabilities that currently comprise GBT, and will have a 50% ownership stake in the joint venture following the closing. In exchange for an investment of $900 million in the joint venture, the investor group will hold the remaining 50%. American Express initially announced its intention to pursue this joint venture transaction in September 2013.
Japan’s Mitsubishi UFJ Financial Group and Morgan Stanley have signed a deal under which MUFG is investing $9 billion in equity in Morgan Stanley for a 21% interest in the Company on a fully diluted basis. MUFG is Japanâs largest financial group and the worldâs second largest bank holding company with $1.1 trillion in bank deposits.
Lazard Freres served as financial advisor to MUFG. BlackRock
provided advice to MUFG on asset valuation and have signed a deal under which MUFG is investing $9 billion in equity in Morgan Stanley for a 21% interest in the Company on a fully diluted basis. MUFG is Japanâs largest financial group and the worldâs second largest bank holding company with $1.1 trillion in bank deposits. Lazard Freres served as financial advisor to MUFG.
Jacksonville, FL-based Fidelity National Information Services has agreed to acquire Scottsdale, AZ-based EFD/eFunds for $1.8 billion in cash. The deal will give FIS greater scale, extending its presence in the U.S. and international banking markets, and expands the distribution channel for its core processing and risk analytic services. EFD also gives FIS EFT and prepaid card processing capabilities. EFD provides services to more than 10,000 financial services companies in more than 80 countries. EFD also provides POS fraud prevention solutions to retailers and electronic benefits processing services to government entities. In 2006, EFD generated total revenue of $552 million and operating income of $83 million. FIS expects to realize approximately $65 million in annual cost savings due to synergies. The transaction is expected to be completed by the end of the third quarter. Last month EFD/eFunds confirmed it received interest for a potential merger and formed a special committee to explore its strategic options. The Company reported that first quarter revenues declined 4% year-on-year to $134 million however, operating income grew 10% to $17 million compared to 1Q/06. ([www.carddata.com]). (CF Library 5/9/07)
The Morgan Stanley Board has set June 30th as the date for the Discover Financial Services spin-off. After the distribution, which involves stockholders of record as of the close of business on June 18th, Discover will be an independent, public company trading on the NYSE under the symbol “DFS.” Morgan Stanley also announced Discover’s board of directors. Dennis Dammerman, who retired in 2005 as Vice Chairman of the Board and Executive Officer of General Electric Company and Director, Chairman and CEO of GE Capital Services, will serve as Non-Executive Chairman of the Discover Board. David Nelms, who has led Discover Financial Services since 1998, also will serve on the Board of Directors. Other Board members include: Jeffrey Aronin, President and CEO of Ovation Pharmaceuticals; Mary Bush, President of Bush International; Robert Devlin, Chairman of Curragh Capital Partners; David Komansky, Chairman Emeritus of Merrill Lynch; Philip Laskawy, former Chairman and CEO of Ernst & Young; Michael Rankowitz, senior advisor to Morgan Stanley; Lawrence Weinbach, Partner at Yankee Hill Capital Management.
EFD, f/k/a eFunds, says it has received interest for a potential merger and has formed a special committee to explore its strategic options. The Company reported that first quarter revenues declined 4% year-on-year to $134 million however, operating income grew 10% to $17 million compared to 1Q/06. The Company posted a 9% year-on-year decline in its U.S. Payments segment with $67.6 million in revenue but income rose 64% to $8.95 million. The International segment soared by 27% to $19.3 million in revenue but lost $4.0 million for the quarter. The U.S. Risk Management segment revenue dipped 6% to $47.1 million with flat income. EFD also reported that it now expects full year 2007 net revenues to fall within its previously published ranges of $591 million to $613 million of total revenue. During the quarter EFD launched its “Integrated Fraud Platform” solution. In March, the Company introduced its new global corporate brand: EFD. For complete details on eFunds’ first quarter performance, visit CardData ([www.carddata.com]). (CF Library 3/7/07)
EFD/eFunds Revenue Historical
1Q/05: $114.2 million
2Q/05: $116.3 million
3Q/05: $133.2 million
4Q/05: $138.0 million
1Q/06: $139.7 million
2Q/06: $132.4 million
3Q/06: $139.4 million
4Q/06: $140.9 million
1Q/07: $134.0 million
Source: CardData (www.carddata.com)
Newark, CA-based Payment Processing has sold a minority stake to BlackRock for $20 million. The transaction will enable PPI to expand through technology development, facility expansion and acquisition. The transaction closed on October 31. Payment Processing provides integrated payment processing solutions, supporting over 500 software developers and more than 10,000 merchants and will process nearly $3 billion in Visa and MasterCard payments. BlackRock is one of the largest publicly traded investment management firms in the United States with approximately $428 billion of assets under management at September 30, 2005.
eFunds has inked an agreement to acquire WildCard Systems for an upfront payment of $228.8 million plus an earn-out of up to $58.8 million. In November, the two Companies signed a distribution agreement and have since signed two tier one financial institution deals under eFunds’ existing alliance with MasterCard. Privately-held WildCard Systems, founded in 1997, specializes in turnkey host-based prepaid cards and custom stored-value products. WildCard is certified by VISA, MasterCard and Discover as an endpoint on their networks and is authorized to be an issuing processor for cards bearing VISA, Electron, Interlink, PLUS, MasterCard, Maestro, Cirrus and Discover/NOVUS payment marks. eFunds says that net revenues for WildCard are anticipated to increase approximately 30% over the revenues of $56.5 million it recorded last year. The deal, which includes a $22.8 million holdback, is expected to close in July.
While American Express is prohibited from doing credit card deals with VISA and MasterCard members, it is doing business in other ways with major U.S. banks. PNC Financial Services Group announced last week that PNC Bank has entered an agreement with American Express to be the exclusive provider of origination, processing and servicing for American Express’ home equity loans and lines of credit. PNC provides origination, processing, and servicing of home equity loans, whether they are requested by phone and via the Internet. PNC notes that its third-party loan servicing division, CLC Consumer Services Co., continues to grow by providing companies with e-commerce capabilities for new products and services.
Paragren announced Tuesday that PNC Bank Corp., one of the largest diversified financial services organizations in the United States, has selected One-By-One as the strategic marketing system for developing and deploying advanced marketing programs across the organization. By implementing a ‘single solution’ relationship marketing system, PNC will significantly improve its campaign management process, respond rapidly to changes in today’s highly competitive environment and deliver innovative campaigns that provide timely offers to its customers.
The addition of One-By-One is the latest enhancement to PNC’s existing enterprise data warehousing environment which enables Customer Value Management (CVM) in a cost-effective manner. As part of the CVM strategy, PNC is leveraging data warehousing technology in implementing an integrated sales management process through all marketing channels. In addition, the organization is utilizing advanced data mining/modeling and computer telephony integration through a state-of-the-art call center to provide intelligent servicing to customers. Implementation of One-By-One will further advance PNC’s capabilities in delivering products and services through a customer value management strategy.
With One-By-One, PNC can consolidate its marketing promotions and gain greater efficiencies and control over its marketing processes while addressing each customer’s unique needs. By coordinating customer contacts across its different businesses, PNC can become even more effective and refined in its marketing programs. One-By-One will enable increased control in customer communication and a decrease in ineffective program execution which will lead to improvements in customer satisfaction and marketing profitability.
One-By-One is an integrated solution that automates the entire marketing process and empowers marketers to execute advanced marketing strategies across multiple communication channels quickly and easily. The system provides the power to model cross-sell and up-sell opportunities, analyze customer churn and lifetime value or evaluate the impact of different segmentation strategies on a campaign plan, as well as archive completed campaigns electronically. One-By-One’s open, scalable architecture allows it to complement current technology investments. The system seamlessly integrates with existing databases as well as popular query and analysis applications. One-By-One automatically extracts, computes, and delivers customer information from a firm’s data warehouse to its data mining, analysis, viewing, and reporting tools. The result is accurate decision-making intelligence consistent throughout the enterprise.
‘We are pleased to be working with an innovator like Paragren. We evaluated several leading relationship marketing systems and chose One-By-One because of its speed and integrated analytical and campaign management capabilities that allow us to turn customer data into actionable information for building solid customer relationships,’ comments John DeMarchis, Vice President Information Marketing Systems for PNC. ‘One-By-One will dramatically increase our ability to respond to changes in today’s highly competitive financial services environment and deliver products and services that provide timely, value-based solutions to our customers.’
‘One-By-One’s robust data summarization routines will enable us to evaluate data at the product, individual, household or business unit level,’ continues DeMarchis. ‘Combined with the system’s flexible, easy-to-use segmentation capabilities, which allow us to describe segments or create new ones on the fly without SQL programming, we can more effectively implement very complex logic in order to precisely target promotions at multiple levels. Plus, with One-By-One’s extensive campaign management capabilities, we can schedule and optimize multiple promotions over time. As a result, we can more effectively manage the marketing process while gaining greater processing efficiencies.’
We are very excited about partnering with such a leading-edge company as PNC,’ said Dan Lackner, Chief Operating Officer for Paragren. ‘PNC is taking a very forward thinking approach to building competitive advantage. They require advanced marketing tools that will not only enable them to access and analyze large amounts of data quickly and easily, but will also allow them to use that information to plan, execute and evaluate effective marketing programs. One-By-One will give them a real competitive edge.’
For more information send e-mail to [email protected], or call 888-420-4213 or 703-995-1878.
Headquartered in Reston, Virginia, Paragren is the leader in Enterprise Relationship Marketing, helping businesses discover, establish and grow profitable customer relationships. By integrating innovative software, customer and market intelligence, and real world expertise, Paragren provides an optimized relationship marketing solution. The One-By-One software suite, enhanced with professional services and unique consumer purchasing data, empowers marketers to execute complex marketing programs quickly and easily. Paragren is a wholly owned subsidiary of APAC Customer Services. Additional information is available at [http://www.paragren.com].
Founded in 1973 and headquartered in the Chicago suburb of Deerfield, Illinois, with corporate offices located nationally, APAC Customer Services Inc. is one of the leading, most technologically advanced outsourcers of inbound and outbound customer contact programs and call center network consolidation. APAC provides sophisticated data enhancement services, operations consultation, and e-commerce program development, all to a growing list of blue chip customers that includes some of the most recognizable names in American business and industry. With specialized experience in the fields of telecommunications, health care/pharmaceutical, financial services, insurance, and travel/hospitality, APAC Customer Services’ more than 60 centers and over 20,000 employees stand ready to handle any customer contact needs.
About PNC Bank Corp…
PNC Bank Corp., headquartered in Pittsburgh, is one of the largest diversified financial services organizations in the United States. Its major businesses include PNC Regional Bank, PNC Advisors, BlackRock, PFPC Worldwide, PNC Institutional Bank, PNC Mortgage and PNC Secured Finance. Additional information about PNC Bank Corporation is available at [http://www.pncbank.com].