CheckFree to Acquire American Payment Systems

Wednesday 17 December 2003 17:36 CET | News

CheckFree Corporation has announced an agreement with UIL Holdings Corporation to acquire American Payment Systems (APS).

Based in Wallingford, Connecticut, APS provides walk-in bill payment services through an extensive national network of more than 8,000 retail and agent locations, which reaches 70 percent of consumers in the top 75 U.S. metropolitan areas. Today, APS enables 7 million households to pay for services in-person. The company serves hundreds of billers with contracted payment services and manages a growing network of non-contracted billers for electronic transaction processing. For 2003, APS expects to process nearly 120 million payments. Under the terms of the agreement, and pending receipt of regulatory approvals and satisfaction of customary closing conditions, CheckFree will pay approximately $110 million in cash for the outstanding stock of APS. The transaction is expected to close before the end of CheckFrees 2004 fiscal year, which closes on June 30, 2004. CheckFree will provide specific financial guidance for this transaction upon closing. As part of the deal, CheckFree also acquires APS prepaid stored value MasterCard business, which leverages the same retail network to provide APS agents with an additional payment service to meet the needs of consumers who may not have an established banking relationship. CheckFree is not acquiring APS prepaid telephony business, which is managed via a joint venture and is not aligned strategically with CheckFrees goals for the acquisition. The lines of business that CheckFree is acquiring have combined annual revenue, net of certain agent commissions, of more than $40 million per year.

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Categories: Payments & Commerce | Payments General
Countries: World
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