Vantiv, Inc. announced an agreement to acquire Mercury Payment Systems, LLC for an aggregate price of $1.65 billion. Mercury is a payment technology and service leader whose solutions are embedded into point-of-sale software applications and brought to market through their dealer and developer partners. Mercury is currently majority-owned by Silver Lake, a global leader in technology investing.
Vantiv, Inc. announced financial results for the first quarter ended March 31, 2014. Revenue increased 8% to $537.6 million in the first quarter as compared to $498.0 million in the prior year period. Net revenue increased 6% to $288.5 million in the first quarter as compared to $272.9 million in the prior year period, primarily due to a 6% increase in transactions. On a GAAP basis, net income attributable to Vantiv, Inc. was $28.1 million or $0.18 per diluted share during the first quarter, compared with $26.1 million or $0.18 per diluted share in the prior year period.
Fifth Third Processing Solutions payment processor has adopted a new brand, name and logo to Vantiv. Vantiv will continue to leverage its strong partner relationships and enhance investments in its best-in-class system platform, products and customer service. The new brand signals the company’s long-term commitment to product development, innovation and growth. This includes added investment in areas such as eCommerce, mobile payment technology, pre-paid debit, fraud and security prevention and other emerging payment opportunities. The Vantiv brand will evolve over time across different parts of the company and continue to operate from the Greater Cincinnati, Ohio area.
Fifth Third Processing Solutions has acquired certain assets Springbok Services in connection with the latter’s Chapter 11 bankruptcy proceeding, including the Springbok reloadable prepaid card processing platform. Developer of full-service, multi-touch prepaid solutions, Springbok employees on processing platform development will also be joining Fifth Third Processing Solutions, allowing the transaction acquirer to immediately expand its processing capabilities to include Visa and MasterCard branded gift cards, general purpose reloadable cards, payroll cards and loyalty programs to further complement its industry-leading debit card and credit card authorization, settlement and back office processing services. Fifth Third Processing Solutions processes 33 billion transactions and over $315 billion in sales volume annually.
Fifth Third Processing Solutions has acquired the assets of TNB Card Services from TX-based Town North Bank independent community bank, advancing its efforts to provide electronic payment solutions to credit unions and their members. TNB Card Services currently provides credit, debit, and prepaid cards, loyalty, consulting and ATM driving with a full suite of back-office services to more than 370 credit unions in 27 states and the District of Columbia. TNB Card Services becomes part of FTPS and is one of the payments industry’s largest providers of transaction processing and acceptance solutions for merchants, businesses and financial institutions around the world.
OH-based Fifth Third Processing Solutions has been
awarded the MasterCard Worldwide “Best in Class” Gold Award for its
excellence in operational achievements. Award winners are determined in the first quarter of each year based on
prior year data. Winners must have annual authorization transaction counts of
greater than one million through the MasterCard Worldwide Network and be compliant with all
MasterCard Rules. The awards program annually acknowledges
performance in key areas that impact cardholder experiences. This marks the second
consecutive year that Fifth Third has been recognized for its payments transaction
processing. Fifth Third Bancorp is a diversified financial services company
with $116 billion in assets and operates 16
affiliates with 1,307 full-service Banking Centers.
Advent International has closed on its 51% stake in Fifth Third’s
processing business. The Fifth Third Processing Solutions, LLC. deal is
valued at $2.35 billion. Fifth Third will retain its 49% interest, and
will also retain its credit card issuing business, which includes retail
credit card and commercial multi-card services. Advent has been active
in the financial services sector for over 20 years, and has backed more
than 25 companies worldwide in a broad range of sub-sectors, including
payments, transaction processing, and financial technology. Related
investments include: Brazil’s CSU CardSystem; Dolex Dollar Express,
which Advent sold to Global Payments in 2003; and Monext, a French
merchant acquirer and bank processor which Advent acquired in 2008.
Fifth Third Processing Solutions has been awarded the “Visa Service Quality
Performance Awards” for the 14th consecutive year. The award is based
on exceptional card operations
performance demonstrated in calendar year 2008, Fifth Third has been
best-in-class for its Lowest Chargeback-to-Sales Ratio. This category
reflects an acquirer’s
ability to effectively educate its merchant customers on Visa’s acceptance
procedures designed to ensure that transactions are properly processed
at the point of sale.
Acquirers who educate and monitor their merchants help reduce
unnecessary and costly
chargebacks and improve performance in this important customer service
Visa established the Service Quality Performance Awards Program in 1992 to
recognize exceptional card operations performance by card issuers and
MasterCard Worldwide signed a multi-year contract extension with
OH-based Fifth Third Bank. Under the agreement, Fifth Third Bank will
continue its partnership with MasterCard, issuing credit and debit
MasterCard cards for both consumers and corporations. Fifth Third holds
$119 billion in assets, and operating 16 affiliates
with 1,311 full-service banking centers in the U.S., has been issuing
MasterCard products since 1980.
Fifth Third Bancorp and Advent International have established a joint venture for Advent to
acquire a 51% interest in Fifth Third’s processing business. Advent will pay Fifth Third $561 million
in cash for a 51% ownership interest in the equity of the LLC and
for certain put rights. Additionally, Fifth Third will receive warrants
in the new company exercisable in certain circumstances. Fifth Third
estimates the valuation adjustments related to these warrants, the put
rights, and minority interest discounts may reduce its implied valuation
of the business by an estimated $50 million. The agreement is subject to
certain potential purchase price adjustments.
Fifth Third Processing Solutions has signed a new, multi-year contract for credit card processing services with Walgreens. Fifth Third Processing Solutions also provides debit and electronic benefits transfer (EBT) processing services to Walgreens. Fifth Third Processing Solutions processes over 21 billion ATM and POS transactions per year for more than 2,300 financial institutions and over 143,947 retail locations worldwide. Walgreens is the nation’s largest retail pharmacy chain with nearly 6,000 retail locations.
VISA has awarded Fifth Third Processing Solutions a VISA Service Quality Performance Awards for “Lowest Chargeback-to-Sales Ratio”. The Lowest Chargeback-to-Sales Ratio category reflects an acquirer’s ability to effectively educate its merchant customers on VISA’s acceptance procedures designed to ensure that transactions are properly processed at the point of sale. VISA established the Service Quality Performance Awards Program in 1992 to recognize exceptional card operations performance by card issuers and acquiring members. The awards acknowledge consistent, superior performance and has consistently recognized Fifth Third Processing Solutions for its excellent processing performance since 1995. Annually, Fifth Third processes $148.1 billion in credit card sales.