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Prague, Czech Republic, May 27, 2009 - Global Payments Inc. (NYSE:GPN), a world leader in electronic transaction processing services, announced today that its Prague-based, wholly-owned subsidiary, Global Payments Europe, s.r.o., recently extended its long-term relationship with Komerční banka, a member of Société Générale Groupe. As a result, Global Payments Europe, s.r.o. will continue providing Komerční banka with an array of card payment and processing services including: Payment Card Authorizations; ATM and POS technical services; card personalization; fraud detection; operational support; eCommerce services; and Card Management System maintenance and development.
The agreement calls for Global Payments Europe, s.r.o. to provide such services to Komerční banka through December 31, 2013. Global Payments Europe, s.r.o. has traditionally provided card related services to Komerční banka dating back to February 1992, when Komerční banka issued its first payment cards and put into operation its first ATMs in the Czech Republic.
“Global Payments is extremely proud to share such an important and long lasting relationship with Komerční banka, and we are honoured by the extension of this relationship for the years to come," said James Hicks, President of Global Payments Europe, s.r.o.“Providing the robust card issuing and acquiring products, services and support required by such leading financial institutions as Komerční banka remains a cornerstone of our success.”
“With the continued evolution and importance of electronic card transactions, Komerční banka required a strong, client focused payments partner to help meet its Card Issuing, ATM and Point of Sale objectives." said Patrice Taillandier–Thomas, Senior Executive Director and Chief Administration Officer, Komerční banka. “Global Payments’ extensive experience in the Czech Republic, coupled with their proven card payments expertise and solid solution and support capabilities, significantly compliment Komerční bank’s customer driven focus.”
Atlanta, Thursday, April 30, 2009 - Global Payments Inc. (NYSE: GPN), a leading provider of electronic transaction processing solutions, announced today that it has completed the acquisition of ZAO United Card Service (“UCS”) in a stock purchase transaction. Under the terms of the agreement, Global Payments will pay a total of $75 million in cash to acquire UCS.
Global Payments’ Chairman and Chief Executive Officer, Paul R. Garcia said, “Russia continues to be one of the world’s fastest growing payments markets. UCS provides us with a direct merchant acquiring platform for long-term growth in Russia and a foundation for other direct acquiring opportunities in Central and Eastern Europe.”
With almost 40 years of industry experience, UCS is a leading merchant acquirer in the Russian Federation. In December 2007, UCS entered into a ten-year marketing alliance agreement with Rosbank, a leading financial institution in the Russian Federation. Under this agreement, Rosbank provides UCS with Visa and MasterCard bank sponsorship and agent bank processing referrals. In addition, UCS has agent bank processing referral agreements with over 40 other financial institutions in the Russian Federation. UCS also provides payment processing services to over 70 financial institutions and over 2,500 ATMs.
Based on current Russian Rouble exchange rates, the company anticipates UCS will add approximately $2.5 million in revenues for the month of May 2009 and will be neutral to diluted earnings per share in fiscal years ending May 31, 2009 and 2010.
The shares of UCS that Global purchased are pledged as collateral in connection with a loan agreement entered into by Rosbank in 2004. Rosbank is scheduled to pay off the loan in September 2009, after which the UCS shares will no longer be collateralized. A portion of the purchase price sufficient to cover the remaining payments under the Rosbank loan will be held in cash escrow.
For additional details on the UCS acquisition and related Russian Federation payments market, please go to the Investor Relations page.
