First Data and InComm terminate acquisition plan
05 November 2008 | 6649 views | 0
First Data says it has reached a mutual agreement with InComm to terminate a proposed acquisition of the Atlanta-based pre-paid card outfit.
The two firms agreed a deal in April which was set to close in the second quarter. Financial details were not provided but Brooks Smith, president and CEO of InComm, was set to become head of First Data's global pre-paid services division.
At the time First Data USA division president Ed Labry said the deal "propels us into having a holistic prepaid product suite".
However, the companies have now agreed to abandon the plan and have instead signed a distribution agreement and will continue to provide joint customers with pre-paid card processing, programme management and a distribution network that allows First Data and its merchants to sell pre-paid products in InComm pre-paid card malls.
Says Labry: "As a strategic partner for many years, this decision lets both parties focus on the unique value we each bring to our mutual customers and the market."