First Data Enters into Agreement to Purchase Citi Merchant Services Unit

DENVER – First Data Corp. today announced the signing of a merchant services alliance agreement with Citibank. First Data will purchase Citibank’s current U.S.-based Citi Merchant Services unit, which provides credit and debit card payment processing services to approximately 15,000 merchant locations, and manage that business in an alliance with Citibank.

“This alliance marks another major commitment to First Data’s merchant alliance strategy,” said John Shlonsky, president of First Data Merchant Services. “Citi Merchant Services clients will benefit from the expertise and expanded service offerings of First Data and Citibank.”

In addition to innovative payment-processing services and account management support, First Data will also contribute sales and management personnel. Citibank will support marketing efforts through all of its sales channels, including retail branch locations in the U.S. First Data currently provides transaction processing services for Citibank’s private label and co-branded private label credit cards along with official check and money order services. Citibank is also a member of First Data’s STAR® Network.

Terms of the deal were not disclosed and the agreement is subject to regulatory approvals.