Morgan Stanley subsidiary Discover Financial Services is to acquire US electronic funds transfer network Pulse for an aggregate purchase price of $311 million.
Following the acquisition, Pulse will become a business unit of Discover Financial Services and will retain its brand, pricing and operating platform as well as its management team, staff and Houston headquarters.
Discover says the merger will combine Pulse's 4100 member banks, credit unions and savings institutions with the Discover Network and its more than 4 million merchant and cash access locations.
David Nelms, chairman and CEO, Discover Financial Services, says: "Together, we intend to be a robust competitor in the important and rapidly growing debit market."
The agreement, which is subject to regulatory and Pulse member approval, is expected to close in approximately 60 days.