A First Security Corp. subsidiary said it has completed a definitive agreement to sell its credit card processing services for credit unions to Equifax Inc. of Atlanta.
First Security Processing Services Inc. of Salt Lake City put the business on the block earlier this year, saying Utah banks' legal and legislative disputes with competing credit unions had made relationships with credit union clients untenable.
The First Security unit is retaining its processing business for banks and thrift institutions, but most of the its 300 clients are credit unions.
The sale to Equifax is expected to close by the end of this year's second quarter. Terms of the agreement, previously announced as a letter of intent, were not disclosed.
Equifax said it will continue providing credit union services in Salt Lake City, retaining First Security Processing Services' staff.
Thomas F. Chapman, executive vice president and head of the Equifax Financial Information Services Group, called the acquisition "a tremendous plus for Equifax's growth strategy." Its card services unit, based in Tampa, Fla., specializes in serving small banks, thrifts, and credit unions.
