U.S. Bancorp in Minneapolis has agreed to sell its third-party ATM and debit servicing business to Fiserv.
The $461 billion-asset U.S. Bancorp said in a press release Tuesday that it will sell the business, which is part of its Elan Financial Services unit, for about $690 million. The deal is expected to close in the fourth quarter.
U.S. Bancorp said it decided to sell the business, which had operated as Elan ATM and Debit Processing, after a strategic review of the unit.
"We believe this sale is the right thing to do for the bank and our customers," Tim Welsh, U.S. Bank’s vice chairman of consumer banking sales and support, said in the release. "Our customers will benefit from the commitment that Fiserv has for this business, and U.S. Bank will benefit as we continue to reinvest in our core businesses."
U.S. Bancorp said it remains committed to its card issuing, corporate payments and merchant services payments businesses, which include Elan Issuing and Elan Corporate Payments. There is no change to those businesses and they are not part of the transaction.
This transaction will not have a material impact on U.S. Bancorp's 2018 financial results.
