CIBC acquires Fiserv Intria Items JV stake
01 November 2005 | 4948 views | 0
Canadian Imperial Bank of Commerce is to acquire Fiserv's minority interest in the Intria item processing joint venture, for an undisclosed sum.
Michael Woeller, CIBC vice chairman and chief information officer, says the move is part of the ongoing reorganisation of the bank's retail back-office operations.
He says the business will remain as a seperate unit of CIBC and will continue to serve its existing external clients and look for new avenues of growth,
Says Woeller: "Intria Items significantly increased its revenues, profitability and employment; improved its service levels; and expanded into new markets from the time the joint venture was formed by CIBC and Fiserv in 1996."
He insists the change in ownership will not affect the bank's ongoing relationship with Fiserv "both as a strategic provider to CIBC and as an adviser on technological issues".
Ken Acheson will remain president of both Intria Items and Fiserv Canada during the handover.
Fiserv says it will recognise a one-time gain of approximately $0.15 per share in the fourth quarter of 2005, as a result of the transaction, although the termination of the arrangement will impact ongoing revenues. Shares in the vendor fell 23 cents to $43.45 in morning trading on the Nasdaq.