The Bancorp Acquires Stored Value Card Solutions Unit from BankFirst
The Bancorp has announced "an agreement with BankFirst, a South Dakota banking corporation, to acquire its "Stored Value Solutions" ("SVS") business. SVS is a leader in the stored value card industry, also known as the prepaid card industry, with more than 3.7 million prepaid cards issued at June 30, 2007."
SVS provides customized and secure program development and card issuing services to national stored value card program managers such as WageWorks, Western Union and Evolution Benefits. SVS participates in the "open loop," stored value card market which includes cards branded with network or association logos such as Visa, MasterCard and Discover.
Under the terms of the agreement, Bancorp will purchase SVS for $60.6 million, payable $12.1 million through delivery of shares of Bancorp common stock plus $48.5 million in cash.
"The acquisition of Stored Value Solutions extends Bancorp's leadership position in such areas as aggregation of HSA deposits and ACH origination. The deep expertise of SVS, led by Managing Director, Jeremy Kuiper, will enhance the business opportunities each company has developed," said Betsy Z. Cohen, Chief Executive Officer of Bancorp.
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