Delta Singular, the IT services unit 38.8% owned by Alpha Bank of Greece, is to sell its outsourcing operation to First Data for EUR206 million in cash.
DSOS provides end-to-end secure payment systems and card issuer processing services for financial institutions.
Alpha says that DSOS will benefit from international ownership in order to expand its geographic scope and customer base and face off increased competition from large independent third party outsourcers and international bank consortia.
Pam Patsley, president of First Data International says: "The addition of DSOS to First Data is a strategic fit and establishes a strong presence for us in Greece, which is an important market for our growth plans in South Eastern Europe."
The deal, which will boost Alpha Bank 2004 group profit by EUR50 million, is expected to be concluded before the end of the third quarter.
Alpha says it will absorb Delta Singular back into the bank once the transfer to First Data is finalised.