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HSBC SELLS ITS STAKE IN HSBC MERCHANT SERVICES TO GLOBAL PAYMENTS
London, UK - 12 June, 2009 - HSBC Bank plc has sold its 49 per cent holding in HSBC Merchant Services LLP (HMS), the card processing joint venture that serves its UK business clients, to its partner in the venture, Global Payments Inc., for a consideration of US$307.7 million in cash.
The HMS joint venture was created in June 2008 when HSBC sold a 51 per cent stake to Global Payments Inc., a leading processor of electronic transactions. HSBC and Global Payments also have sale-and-referral agreements in the US and Canada along with a joint venture in Asia covering 11 countries and territories.
A new 10 year marketing alliance agreement has also been signed, under which HSBC will continue to refer its UK customers to HMS. No staff will be affected by the change of ownership and HMS will continue to be based in Leicester.
Noel Quinn, HSBC's UK Head of Commercial Banking, said: "We are focussed on ensuring that our commercial banking relationships benefit from a combination of HSBC's core service capabilities, including our international distribution, and from high quality support services. Global Payments is a market leader in the provision of card processing services, whom we know well from working together in Asia and North America. Our UK customers will continue to benefit from their expertise."
Paul R. Garcia, Chairman, President and Chief Executive Officer of Global Payments, said: "We are very pleased to acquire the remaining interest in our joint venture. Our performance in the United Kingdom this year has provided a strong foundation for long-term growth, as we continue to provide a wide range of high value payment solutions and world-class service to merchants. This transaction demonstrates the strength of our relationship with HSBC as our partnership in the United Kingdom evolves from a joint venture to a marketing alliance. We look forward to continuing and extending our successful worldwide relationship with HSBC."
Media enquiries to:
Patrick McGuinness on +44 20 7991 0111 or at patrickmcguinness@hsbc.com