Bank of America Corp. is selling its PayMode electronic payment and remittance processing service in a deal that would give B of A a stake in another payments company.
The $2.3 trillion-asset Charlotte company said it would receive 1 million warrants to buy stock in Bottomline Technologies, though full financial terms were not disclosed. The sale is expected to close in the next 90 days.
B of A inherited PayMode from its 2004 purchase of FleetBoston Financial Corp. B of A is parting ways with the product, operations, and vendor network but will retain its PayMode client relationships. B of A and Bottomline also entered a multiyear agreement to operate and enhance the product.
