First Data acquires German payment processor GZS
03 January 2006 | 6546 views | 0
US-based First Data is acquiring German card payments processor Gesellschaft für Zahlungssysteme (GZS). Financial terms of the deal were not disclosed.
GZS provides card issuing and acquiring processing, as well as cross-border debit and fraud management services, to banking clients across Germany.
The firm processes 982 million transactions per year and provides outsourced processing services for 8.5 million German and Swiss credit cards.
The vendor also provides merchant processing services for its clients who serve more than 300,000 merchants. The company's Easycash subsidiary delivers network service provider and e-business services.
First Data says the acquisition will enable GZS to broaden its service offering to its banking and merchant clients and to support their cross-border strategies.
David Yates, president, Emea, First Data International, says: "We are convinced that we will bring real value to GZS clients by offering a broad range of electronic processing and support services. We also look forward to working with the GZS management and staff to further develop the business."
Bernd Fieseler, chairman of the supervisory board of GZS, adds: "From the partnership with First Data, GZS' clients will benefit from enhanced services and economies of scale."
Completion of the transaction, which is expected to occur in the second quarter 2006, is subject to approval of relevant authorities.
The US e-payments processor has made a number of global acquisitions over the past 12 months including Austrian Payment Systems Services and EuroProcessing International (EPI), a provider of electronic payment processing services to banks in Central and Eastern Europe.