Wells Fargo has agreed to buy back Regulus West, the wholesale remittance processing business it previously sold to California-based Regulus Group. Financial terms of the deal were not disclosed.
Regulus West was formed in 1996 as a joint venture between Regulus Group and Wells Fargo. At the time Regulus Group acquired the bank's remittance processing business and facilities. Regulus went on to buy Wells Fargo's remittance processing sites in 2000.
Under the new agreement, Regulus West's entire wholesale remittance processing operations, which includes facilities across 13 states, transfer back to Wells Fargo.
Keith Theisen, SVP, wholesale treasury solutions, Wells Fargo, says: "With the Regulus acquisition, Wells Fargo will offer customers the largest image-equipped wholesale remittance processing network in the nation, investing in sites coast to coast."
Theisen says the bank will also use Check 21 processing to speed cash availability for customers.
The transaction is scheduled to close in the third quarter.
Regulus Group says following the acquisition it will continue to provide retail remittance processing services to banks, including Wells Fargo.
Kathy Hamburger, Regulus Group president and COO, comments: "The buy-back of the wholesale remittance business allows each company to concentrate on its core services, along with leading the market with innovative transactional offerings."