Certegy acquires Crittson Financial Services for $22.5m
20 February 2004 | 777 views | 0
Certegy Inc. (NYSE: CEY), the nation's leading provider of card services to community banks and credit unions, today announced the acquisition of Crittson Financial Services LLC for approximately $22.5 million in cash.
Based in Elkhart, Indiana, Crittson provides full service card and merchant processing services to over 275 financial institutions, 450,000 cardholders and 8,500 merchants throughout the United States. The closing of the transaction, which is subject to customary closing conditions, is expected to occur in early March 2004.
"We are delighted to announce this acquisition. Crittson has built an extremely attractive customer base which is an excellent fit for our existing card business," stated Robert Bream, Senior Vice President and Group Executive of Certegy Card Services - North America. "We welcome Crittson's financial institutions and merchants as Certegy customers and look forward to providing them with our full range of products and services."
Robert Crothers, Chairman of Crittson, added, "Certegy has an outstanding reputation for providing high quality products and customer service, and we are confident that our customers will benefit from this new relationship."
Certegy expects this acquisition to add approximately $20 million in annualized revenues, comprised of approximately $13 million in card issuing revenue and $7 million in merchant processing revenue. The Company anticipates the transaction to be neutral to diluted earnings per share in 2004, considering integration costs and lower share repurchases than previously assumed. In 2005, the acquisition is expected to add approximately $0.03 to diluted earnings per share.