First Data Corp., a payment processing company owned by KKR, has agreed to acquire InComm, a provider of stored value gift and prepaid products. No financial terms were disclosed. InComm had over $300 million in 2007 net revenue.
First Data Corp., a global leader in electronic commerce and payment processing services, today announced that it has reached an agreement to acquire InComm, an industry leading marketer, distributor and technology innovator of stored value gift and prepaid products.
Specific terms and conditions of the agreement were not disclosed, but the transaction is expected to be accretive to First Data. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be completed in the second quarter of this year.
With over $300 million in 2007 net revenues and almost $8 billion in retail sales transactions processed in 2007, InComm is one of the U.S.'s largest distributors of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions.
“The combination of First Data and InComm propels us into having a holistic prepaid product suite that includes banking products, payroll solutions, closed and open loop gift cards and now expanded distribution,“ said Ed Labry, president of First Data Corp.'s USA division. “We look forward to leveraging InComm's expertise and robust retail network to offer end-to-end prepaid solutions to our retail customers around the world.“
InComm's innovative product and technology advancements in the United States have positioned the company well for continued international expansion. Currently, InComm provides stored valued product marketing and technology solutions to international markets in Europe and Canada.
Brooks Smith, current president and CEO of InComm, will become the leader of First Data's Global Prepaid Services division when the transaction closes. “We are pleased to join First Data and are confident that this partnership will deliver even more value to our current customers. Additionally, First Data's global reach, unmatched scope of solutions and commitment to service excellence will not only enable us to enter new international markets, but also help to expand distribution and deliver innovative prepaid solutions to the small and mid market,“ said Smith.
InComm is a leader in the marketing, distributing and technology innovation of stored-value gift and prepaid products using state-of-the-art point-of-sale transaction technology and payment solutions to revolutionize retail product sales and customer experiences. With almost $8 billion in retail sales transactions processed in 2007, InComm is one of the nation's largest distributors of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions. InComm partners with consumer brand leaders around the world to provide more than 145,000 retail locations the products and services their customers demand. Since 1992, InComm's patented technologies have made the buying process easier for consumers while streamlining the selling process for product and retail partners. To learn more about InComm, visit www.incomm.com or call 1.800.352.3084. InComm is headquartered in Atlanta with offices in Japan, Canada, the United Kingdom, Puerto Rico, Colorado, Texas, Florida, New Jersey, Oregon, Arkansas, Alabama, Minnesota and Mississippi.
About First Data
First Data Corp. is a leading provider of electronic commerce and payment solutions for businesses worldwide. With operations in 37 countries, First Data serves over 5.4 million merchant locations, over 2,000 card issuers and their customers. We power the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; receivables management solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce, loyalty and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2.1 million ATM and retail locations. For more information, visit www.firstdata.com.