Fiserv in Processing Deal With Canadian Imperial

Canadian Imperial Bank of Commerce and Fiserv Inc. have agreed to form a new Canadian-based item processing company.

Executives from the two companies said they expect the venture initially to have annual revenues of $112 million.

ScotiaBank of Toronto is also expected to participate in the venture.

The new company will operate as a unit of $126.8 billion-asset Canadian Imperial and will handle all of its item processing and currency operations centers. Canadian Imperial processes 700 million checks annually through centers in 13 Canadian cities.

The new venture would eventually offer to process for other Canadian banks as well.

Fiserv, based in Milwaukee, will have an equity stake through its Canadian subsidiary, Fiserv Canada, and will be paid a management fee. Further terms were not disclosed.