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 Caixas 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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