The apparel chain filed for bankruptcy in January and closed its e-commerce site and stores.
Payments processor Global Payments has acquired the remaining 49% interest in its merchant services joint venture in the United Kingdom from HSBC Bank.
Payments processor Global Payments Inc. has acquired the remaining 49% interest in its merchant services joint venture in the United Kingdom from HSBC Bank plc. Global Payments provides payment processing services to Internet as well as bricks-and-mortar retailers.
Global Payments will pay U.K.-based HSBC $307.7 million in cash to acquire the remaining ownership interest in the joint venture. Additionally, HSBC is extending its marketing agreement with Global Payments to June 2019. Under the marketing agreement, HSBC will continue to provide merchant referrals and bank sponsorship to Global Payments.
Global Payments and HSBC formed their joint venture, HSBC Merchant Services, in June 2008. HSBC Merchant Services provides payment processing services to merchants in the U.K. and Internet merchants worldwide.
“We are very pleased to acquire the remaining interest in our joint venture,” says Global Payments’ chairman and CEO Paul R. Garcia. “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.”
Global Payments used existing cash and lines of credit to finance the purchase, and anticipates the deal will generate revenue in fiscal 2010. The company plans to provide additional financial details about the transaction during its fiscal 2009 year-end earnings scheduled for July 23.
“We are focused 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,” says Noel Quinn, HSBC’s U.K. head of commercial banking. “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 U.K. customers will continue to benefit from their expertise.”