ATLANTA & BARCELONA, Spain & VIENNA--(BUSINESS WIRE)--
Global Payments Inc. (NYSE: GPN), a leading worldwide provider of
payment technology services, CaixaBank, Spain's largest bank by market
share, and Erste Group Bank AG, a leading financial services provider in
Central and Eastern Europe (CEE), announced today an agreement to form a
joint venture to provide merchant acquiring and payment services in
three core locations in Central and Eastern Europe: Czech Republic,
Slovakia and Romania.
Erste Group Bank, headquartered in Vienna, is one of the largest
financial institutions in the eastern part of the EU. Ever since its
foundation in 1819 as Central Europe's first savings bank, Erste Group
has been pursuing a business strategy focused upon the real economy.
Erste Group has a large consumer banking footprint with more than 2,800
branches in 7 countries and 16.2 million clients.
CaixaBank is a leader in technological innovation worldwide and has been
a pioneer of new payment systems. It has been named as the World's Most
Innovative Bank by Euromoney in 2014 and 2013, and it recently won the
Innovative Spirit in Banking accolade at the 2014 Global Banking
Innovation Awards, organised by the Bank Administration Institute and
Finacle. CaixaBank is a strategic partner of Global Payments in Spain
and Brazil and of Erste across CEE markets.
"We are pleased to enter into this partnership with CaixaBank and Erste
Group," said Jeff Sloan, Chief Executive Officer of Global Payments.
"The joint venture will allow us to significantly expand our direct
distribution footprint in Europe with leading financial partners,
catalyze our capabilities to service multinational customers across the
common European payments area and leverage our global product and
service offering to Erste Group Bank's merchants. The partnership
positions our European business for accelerated growth at a favorable
time in Europe."
"This joint venture will see CaixaBank fortify its international
presence by harnessing two of its biggest strengths: its capacity for
technological innovation, for which it has earned global renown, and
collaboration with international partners such as Global Payments and
Erste Group Bank," said Gonzalo Gortázar, Chief Executive Officer of
"Our clients expect from their acquiring bank innovative technology,
better service availability, reduced transaction costs and top class
information management. By joining forces with two strong expert
companies in this field we will increase the focus on our acquiring
business and further upgrade the quality service that we provide to
merchants across Central and Eastern Europe. The deal represents an
important step for Erste Group in CEE and we expect it to lead to
further growth in our payments business," commented Peter Bosek, Erste
Group Board Member responsible for retail banking.
Global Payments and CaixaBank will pay €30 million in cash to acquire a
51 percent majority ownership in the venture. Erste Group will
contribute its existing merchant acquiring businesses in each of the
three countries to the joint venture and will hold a 49 percent
interest. The transaction is expected to close in the second half of
fiscal 2016, subject to receipt of regulatory approvals and satisfaction
of customary closing conditions.
Global Payments does not expect the joint venture to have a material
impact on the company's fiscal 2016 cash earnings per share or capital
plans. Global Payments will provide additional financial information
about the joint venture upon closing.
About Global Payments
Global Payments Inc. (NYSE: GPN) is a leading worldwide provider of
payment technology services that delivers innovative solutions driven by
customer needs globally. Our partnerships, technologies and employee
expertise enable us to provide a broad range of products and services
that allow our customers to accept all payment types across a variety of
distribution channels in many markets around the world.
Headquartered in Atlanta, Georgia with more than 4,300 employees
worldwide, Global Payments is a Fortune 1000 Company with merchants and
partners in 29 countries throughout North America, Europe, the
Asia-Pacific region and Brazil. For more information about Global
Payments, our Service. Driven. Commerce brand and our technologies,
please visit www.globalpaymentsinc.com.
CaixaBank is Spain's leading bank by market share and among the 10
largest banks in the Eurozone by market capitalisation. CaixaBank's
activities span Spanish retail banking and insurance, an international
banking portfolio and industrial and real estate assets. Its origins can
be traced back over 100 years. It is majority owned by "la Caixa"
Banking Foundation. CaixaBank, with Isidro Fainé as Chairman and Gonzalo
Gortázar as CEO, has the largest client base in Spain (14 million
clients by March 2015); €293 billion in client funds, and €212 billion
in client loans. It has the largest footprint in Spain with 5,438
branches and the widest network of ATMs at 9,683.
In Spain, CaixaBank has more than 14 million cards in circulation and a
market share of 22.7%. CaixaBank was the first bank in Spain to
introduce contactless payment technology, with more than 4 million
contactless cards now in circulation and over 200,000 contactless-ready
In addition to its strong foothold, CaixaBank leads in online banking,
where it has 4.5 million active customers, and mobile banking with 2.5
million active customers, accounting for 22% of all mobile banking
transactions. The bank also has 70 applications available, which have
been downloaded more than 11 million times.
About Erste Group Bank
Erste Group is the leading financial services provider in the Eastern
part of the European Union (EU). Around 46,000 employees serve 16.2
million clients in 2,700 branches in 7 countries (Austria, Czech
Republic, Slovakia, Romania, Hungary, Croatia, Serbia). It has over 11
million active payment cards in use across Austria and Central and
Eastern Europe and it recorded a four times increase in the number of
contactless transactions processed in 2014 compared to the previous
year, up to 123 million transactions. As of Q1 2015 Erste Group posts a
net profit of EUR 225.8 million and total assets of EUR 202.6 billion.
The core tier-1 ratio (Basel III phased-in) stood at 10.5%.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150727005190/en/
Global Payments Inc.
Jane Elliott, 770-829-8234
Amy Corn, 770-829-8755
Communications and External Relations Department
Tel: +34 93 404 74
Group Bank AG
Carmen Staicu, +43
50100 - 11681
Source: Global Payments Inc.
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