Under the terms of the agreement, and pending regulatory approvals and customary closing conditions, Global Payments will pay €125m in cash to acquire a 51% majority ownership in the venture.
la Caixa will retain the remaining 49% and will contribute its existing merchant acquiring business to the joint venture.
In addition, the bank has agreed to a 20 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.
The transaction is expected to close during Global Payments’ third fiscal quarter, which ends 28 February 2011.
la Caixa CEO Juan Maria Nin said by setting up a strategic alliance, the deal represents an important step for la Caixa in the international growth of its payments systems business.
