First Data Corp. and iFormation Group have completed the establishment of eOne Global LP, their jointly owned Internet payment technology company, and have named some industry heavyweights to its board.
The new directors, announced Tuesday, are Chuck Russell, former chief executive officer of Visa International and a private investor; Bill Harris, former CEO of Intuit Inc. and PayPal; Jim Robinson 3d of RRE Investors; and Cliff Robbins of General Atlantic Partners. The company said it is still hiring executives and adding directors.
Garen K. Staglin, chief executive officer and president of eOne Global, called the additions to the board important for industry influence and deal flow.
Already on the board were Ric Duques, chairman and CEO of First Data, and David Pecaut, president of iFormation Group. Iformation Group, a New York business incubator for online companies, is a partnership of Boston Consulting Group Inc., General Atlantic Partners LLC, and Goldman Sachs Group Inc.
eOne Global, which is based in Napa, Calif., was announced in October but already has a structure and money in place from its parent companies. eOne develops payment technologies that facilitate different kinds of Internet transactions. The company says it has assets and cash of about $600 million, about 80 employees, and is focused on building the worlds strongest payment infrastructure for the digital age.
Atlanta-based First Data contributed several of its products to eOne: its SurePay end-to-end payment and security products for business-to-business and business-to-consumer markets; CashTax Inc., its business-to-government payment subsidiary; and $75 million in cash. iFormation contributed $160 million. First Data owns 75% of the company, and iFormation owns 25%.
Mr. Staglin said eOne stands poised to become the default solution for payments in the sectors it serves.
In business-to-government tax payments, for example, Mr. Staglin said, CashTax is one of two options on the market. He said eOne is in discussions with 23 states about adding Internet-based tax payment services.
eOne can handle state taxes such as property taxes, licenses, and inventory taxes, things that are today a morass of paperwork. Through a Web product we will make that easier for states, he said.
The company is developing more Internet payment products.
People in the industry are saying this is the first time weve seen an aggregation of resources, talent, and the capabilities of First Data behind them to launch these new technologies and gain traction, Mr. Staglin said. With $225 million in capital to invest, we are not just another dot-com start-up.
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