NetSpend and Skylight Financial have announced signing of a definitive merger agreement to combine business operations. They say that "the merger forms one of the largest private companies dedicated to meeting the financial services needs of unbanked and underbanked consumers in the United States."
Having issued more than 14 million prepaid debit and gift cards, NetSpend has one of the most convenient and accessible retail networks in the country, including more than 30,000 card purchase locations and a total of approximately 65,000 debit card reload locations. NetSpend also offers full self-service sales and delivery capabilities through its web and mobile platforms.
Like NetSpend, Skylight is a top provider of account-based financial services focused primarily on serving unbanked and underbanked consumers in the United States. Through its flagship products, Skylight has established itself in the prepaid debit card industry as the leading corporate payroll and government benefits card provider. Skylight has strategic partnerships with U.S. Bank and SunTrust, and has amassed over 1,000 corporate client relationships for its payroll card and other prepaid debit products.
"The combination of NetSpend and Skylight greatly expands the breadth of products and services we can offer to the millions of unbanked and underbanked consumers in this country," said NetSpend Chief Executive Officer Daniel R. Henry. "The unique capabilities of the merged companies will allow our corporate customers to manage their gift card, payroll card, and general purpose prepaid card programs in one cohesive product suite."
"We are thrilled to join forces with NetSpend," said Kevin Lee, Chief Executive Officer of Skylight. "NetSpend's retail presence and extensive servicing capabilities combined with Skylight's corporate payroll platform and direct-to-consumer sales expertise will provide an unmatched depth of service offerings for consumers and corporations alike."
NetSpend's headquarters will remain in Austin, Texas, and Skylight will continue to operate out of its current location in Atlanta, Georgia. The transaction, which was approved by the board of directors of NetSpend and Skylight, is subject to certain customary conditions and is expected to close in the 3rd quarter of this year. Following the projected close of the transaction, Skylight will continue for an undetermined amount of time under the same name, as a subsidiary of NetSpend Holdings, Inc., parent corporation of NetSpend Corporation.