DENVER – First Data Corp. this week said it will terminate its lucrative merchant payments venture with JP Morgan Chase, known as Chase Paymentech Solutions, by year end and will bring the operation in house.
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After the transition, JPMorgan Chase and First Data, which went private last year in a $27 billion buyout by Kohlberg Kravis Roberts & Co., will operate separate payment businesses. The companies formed the venture in 2005 when First Data was publicly traded.
JPMorgan Chase will retain 51% of the joint venture’s assets, including most of its employees and its Canadian and European operations. The bank also will retain the joint venture’s Dallas headquarters. It will name its payments and merchant acquiring business Chase Paymentech.
