National Processing Co., an affiliate of National City Corp. of Cleveland, said it has agreed to sell its check processing unit to a newly formed company, International Payment Services, for $38 million.
The sale of NPC Check Services Inc., which specializes in point of sale check verification and clearing, is one in a series of divestitures of noncore activities. In February, NPC sold freight services and corporate payables units. Last month, National City sold Stored Value Systems, a former NPC business unit.
NPC, a leader in merchant credit card and airline ticket processing, said it would take a first-quarter after-taxes earnings charge of $72 million to account for the sale of "several business lines."
Thomas A. Wimsett, NPC executive vice president, said the sale will allow NPC to focus on its other business units, such as merchant credit card and airline ticket processing, as well as imaging.