LONDON – First Data Corp., a global leader in electronic commerce and payment services, has agreed to acquire EuroProcessing International, a leading card processor in Central and Eastern Europe, from a leading Nordic private equity company, Reiten & Co Capital Partners V AS, and the investment company Creati AS. The deal will give First Data an important foothold in Eastern Europe and the Nordic region, while enabling delivery of an enhanced service offering to EuroProcessing International’s banking clients.
EuroProcessing International has offices or representatives in Slovakia, Lithuania, Latvia, Serbia and Montenegro, Russia and Hungary, with over 330 employees and headquarters in Norway. The company is active in ten Central and Eastern European countries and has strong relationships with local and Western European banks that are expanding rapidly in the area. EuroProcessing International supports these banks with a range of issuer and acquirer processing services including ATM and POS transaction processing, rental and maintenance, debit and credit card management, card personalization, and electronic top-up of prepaid mobile airtime through POS, ATM and GSM messages.
The rapidly expanding economies of Central and Eastern Europe (CEE) offer First Data important opportunities for growth. The acquisition of EuroProcessing International positions First Data strongly to build its business, establishing a new single entity for debit and credit issuer and acquirer processing across the region. This transaction reflects First Data’s commitment to being a significant participant in the European debit market. The EuroProcessing International management team further strengthens the company’s capabilities in this area, through solid relationships across CEE and an understanding of regulatory and compliance issues in the region.
While debit cards are most prevalent, CEE countries also offer significant new opportunities for credit card growth. With the acquisition of EuroProcessing International, First Data will further enhance the sales organization to secure new clients for the company’s existing services, while also offering credit card consultancy.
This acquisition also represents an important step in the development of First Data’s growth strategy in the Nordic region. As well as leading business growth in CEE, the EuroProcessing International management team in Oslo will lead First Data’s operations in the Nordic markets, offering the full First Data issuing and acquiring services portfolio to banks across the region.
Pam Patsley, president of First Data International, said: “Many of the banks that are growing rapidly through acquisitions in Central and Eastern Europe now have multiple disparate processing platforms — and a strong and urgent desire for entering into regional contracts. First Data is well equipped and, through this acquisition, we are well positioned to assist these banks in securing the efficiencies and value that such consolidation will deliver.”
David Yates, president of Europe, Middle East and Africa, First Data International, added: “This acquisition builds out First Data’s European footprint further and gives us direct, on-the-ground experience of operating in one of the fastest-growing areas of the region. We are committed to the delivery of global payments expertise through a local organization that is deeply rooted in the business environment in which our clients operate. This differentiates us from other players in the market — as does the breadth of our service offering across debit, credit and loan processing and in merchant acquiring.”
Johan Reinsli, CEO of EuroProcessing International, commented: “Being a part of a world leader in payments processing will take our company to the next level. In combination with First Data, we will deliver increased support to existing and new banking clients, and make a significant contribution to their continuing success.”
