JPMorgan Chase is to acquire Citigroup's Citicorp Electronic Financial Services (CEFS) subsidiary for $380 million in cash.
CEFS is a provider of government issued benefits payments and pre-paid stored value cards used by government agencies, as well as stored value services for private institutions.
JPMorgan says the acquisition further strengthens its wholesale payment services business and its ability to service public sector agencies. The bank expects the transaction to close this quarter.
Charles Prince, Citigroup chief executive officer, and Robert Willumstad, president and chief operating officer, issued the following joint statement: "Today's announcement underscores our commitment to evaluate our portfolio of businesses and focus on those that are core to the company. Citigroup will remain focused on businesses in which we have a leading market position."