First Data Corp. has scrapped its plan to acquire the Atlanta gift card provider Interactive Communications Inc.
Instead the two companies have entered a distribution agreement that will allow clients of First Data, a Denver unit of Kohlberg Kravis Roberts & Co., to sell InComm's prepaid cards, First Data said Tuesday.
"This decision lets both parties focus on the unique value we each bring to our mutual customers and the market," Ed Labry, the president of First Data's U.S. division, said in a press release.
When the deal was announced in April, First Data said that it would close in the second quarter and would have allowed the unit to start distributing prepaid cards to consumers through displays in retail stores.
Last year InComm generated $300 million of revenue.