Bank of America and First Data Corp have formed a new company to deliver next-generation payments solutions to merchants ranging from small business to commercial and corporate clients worldwide. The new company ‘Banc of America Merchant Services’ will provide clients with a suite of payments solutions including credit, debit and prepaid cards to merchant loyalty, check and eCommerce payments, the companies said.
The bank said that merchant clients also will benefit from new service offerings including loyalty and prepaid programs, along with mobile commerce and check solutions. For merchants seeking to expand their offerings, Banc of America Merchant Services will offer the scalability, integrated capabilities of the transactional process to deliver eCommerce solutions. Thomas Bell, Chief Strategy Officer and President of First Data’s financial services business was named Chief Executive Officer of Banc of America Merchant Services.
Bank of America will contribute approximately 240,000 merchant relationships and First Data will contribute approximately 140,000 merchant relationships to the new company. Banc of America Merchant Services will be approximately 46.5% owned by Bank of America and 48.5% by First Data, with the remaining stake held by Rockmount Investments, an investment vehicle controlled by a third party investor.
Bank of America Merrill Lynch acted as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal advisor to Bank of America. Sutherland Asbill & Brennan and Perkins Coie acted as legal advisors to First Data.
Mr. Bell said: “The combination of First Data’s world-class technology and industry experience with the power of Bank of America’s brand and branch referral channel will enhance Banc of America Merchant Services’ position as an efficient and innovative player in the payments market.”
Catherine Bessant, President of Bank of America’s Global Product Solutions group, said: “This alliance provides stronger payments acceptance capabilities as well as enhanced business-reporting tools and a better experience for their customers.”
