Continuing a steady withdrawal from the card payments
processing market, HSBC has sold the remaining 49 percent stake in
its UK merchant acquiring joint venture (JV) to Global Payments.
The move follows Global’s acquisition of a 51 percent stake in the
bank’s UK business unit in June 2008, a deal that gave the US
payment processor a 15 percent share of the UK’s card processing
market.
In the latest cash deal Global will pay HSBC $307.7 million, or
about £187 million in the UK bank’s reporting currency. This
compares with $439 million paid for the 51 percent stake in June
2008 which at the then prevailing exchange rate equaled about £225
million.
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As part of the deal HSBC will extend the current 10-year exclusive
marketing alliance agreement whereby it provides merchant referrals
and bank sponsorship to Global to June 2019.
The close relationship between HSBC and Global was further
highlighted in July 2008 with HSBC’s sale of its merchant acquiring
unit in the Philippines to their JV in the region, Global Payments
Asia-Pacific (GPA). Formed in 2006 GPA provides card processing
services in 11 countries and territories in the region. Global paid
HSBC $67.2 million for its 56 percent stake in GPA.
Reflecting solid inroads into its core markets Global forecasts
total revenue of between $1.55 billion and $1.58 billion in its
financial year to 31 May 2009. This represents an increase of
between 21.6 percent and 24 percent compared with the previous
year.
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