Fiserv scoops up ATM, debit servicing from U.S. Bank

Core processing giant Fiserv is buying the third-party ATM and debit servicing business from U.S. Bank for approximately $690 million.

The two business lines are part of the Minneapolis bank’s Elan Financial Services unit; it includes Elan’s MoneyPass® surcharge-free network of more than 33,000 ATMs. Collectively, they have revenue of more than $170 million, Fiserv said in a release.

The sale comes after a strategic review of the business unit, U.S. Bank said. The company will keep other lines from the Elan division, including credit card issuing and corporate payments.

“We believe this sale is the right thing to do for the bank and our customers,” said Tim Welsh, vice chairman of consumer banking sales and support at the $461 billion U.S. Bank. “Our customers will benefit from the commitment that Fiserv has for this business, and U.S. Bank will benefit as we continue to reinvest in our core businesses.”

The planned sale is expected to close in the fourth quarter. Fiserv anticipates this transaction to be accretive to adjusted earnings per share in 2019.

“We continue to see opportunities for financial institutions to enhance the card-based payments they provide to their customers in an always-on, anytime access world,” said Jeffery Yabuki, President and CEO of the Brookfield, Wis.-based Fiserv. “This acquisition expands our capabilities and provides additional expertise, which together should enhance the value we provide our clients. We look forward to welcoming the Elan team to Fiserv.”