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Payments General

Spain: Global Payments, 'la Caixa' to establish joint venture

Friday 19 November 2010 | 09:24 AM CET

Global Payments, an international provider of electronic transaction processing services, and Spain-based financial services provider "la Caixa", have signed an agreement to form a joint venture, designed to provide merchant acquiring and payment processing services to merchants in Spain.

Under the terms of the agreement, pending regulatory approvals and customary closing conditions, Global Payments is set to pay EUR 125 million in cash to acquire a 51 percent majority ownership in the newly-formed venture. Furthermore,"la Caixa" will retain the remaining 49 percent stake and will contribute its existing merchant acquiring business to the joint venture. In addition, the bank has agreed to a twenty-year marketing alliance in which "la Caixa" will refer customers to the joint venture for payment processing services in Spain and provide sponsorship into the card networks.

For the calendar year 2010, "la Caixa'''s merchant acquiring business is expected to generate revenue of over EUR 60 million from about 590 million transactions. "la Caixa" provides merchant acquring services via over 150,000 merchant outlets. The bank also offers consumer banking services via more than 5,000 branches and over 7,902 ATMs.

The transaction is expected to close by the end of February 2011.
 

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