Fifth Third Processing Buys National Processing Solutions

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CINCINNATI – Fifth Third Processing Solutions announced yesterday it has agreed to acquire National Processing Company, creating one of the largest merchant acquiring businesses in the United States, with a particular focus payment processing for small and medium enterprise businesses, a market served by NPC.

The deal comes three months after Fifth Third Processing acquired the TNB Services credit card processing operations of credit union-owned Town North Bank, cementing the company’s position as a leading processor of credit union accounts.

The company said acquisition of NPC facilitates Fifth Third Processing’s delivery of electronic payment solutions to Independent Sales Organizations and agent banks, strengthening its position in the SME segment and establishing Fifth Third as a major player in the third party and agent bank referral channels. These capabilities will accelerate Fifth Third Processing Solutions’ efforts to cross sell merchant processing to more than 3,000 current Fifth Third Processing Solutions financial institution customers.

Fifth Third Processing is a joint venture, owned 51% by private equity firm Advent International of Boston and 49% by Fifth Third Bancorp of Cincinnati.

NPC is owned by private equity firm GTCR Golder Rauner, LLC of Chicago.

The transaction is expected to close in early November, pending satisfaction of customary closing conditions. Upon completion, NPC will become a subsidiary of Fifth Third Processing Solutions. It will continue to have locations in Louisville, Ky., Houston and Chicago. The combined Fifth Third Processing Solutions will remain headquartered in Cincinnati. Together, Fifth Third Processing Solutions and NPC will partner with more than 420,000 merchant locations in the U.S., handling approximately $344 billion in annual merchant payments volume.

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