COLUMBUS, Ohio, April 10 /PRNewswire/ -- Banc One Corp , First USA Inc , and First Data Corporation, Hackensack,
New Jersey (NYSE: FDC), announced plans today to capitalize on the anticipated completion of the acquisition of First USA
by Banc One.
Plans include:
* A long-term bank card processing agreement with First Data
Corporation.
* A private label card processing joint venture between Banc One
and First Data Corporation.
Banc One, First USA and First Data have reached a long-term agreement for processing all Visa, MasterCard and private label
credit cards issued by both Banc One and First USA, which will become effective when First USA joins Banc One. Currently,
First Data processes approximately 17 million accounts for First USA and Banc One and intends to convert an additional 6
million bank card accounts during the next 12 months.
Banc One and First Data have also agreed to form a joint venture for private label credit card processing. Banc One will
contribute the Triumph card processing system to the joint venture. Data processing services will be provided by the joint
venture for 5 million First Data accounts and 7 million Banc One accounts.
An existing joint venture between Banc One POS Services Corporation, a unit of Banc One, and First Data Merchant Services,
a unit of First Data, will continue after Banc One completes the First USA acquisition. First USA currently owns a 57% interest
of First USA Paymentech, Inc. It is Banc One's current intention to allow Paymentech to pursue greater operating
independence and the strategy for growth established under First USA. Accordingly, Banc One has stated it expects to reduce
its ownership of First USA Paymentech following the merger with First USA. Any such ownership reduction will only be
effected if it can be accomplished in such a way as to preserve the pooling accounting treatment of the Banc One/First USA
transaction.
John B. McCoy, Chairman and Chief Executive Officer of Banc One, said, "One of the reasons why we are so delighted that
First USA is joining us is the economies of scale and skill the two companies possess. Combining the card operations and using
First Data's enhanced processing capabilities will produce significant financial benefits for Banc One and First USA."
Richard W. Vague, President and Director of First USA, added, "Our combined strength will provide us with greater flexibility
as well as enable us to offer a broader range of financial services to our existing customer base. The size of the new organization
will permit us to realize efficiencies far beyond what either one of us could have achieved separately."
"We share with Banc One and First USA the philosophy of strategically serving the needs of customers through the delivery of
value-added products and services," said Ric Duques, Chairman and Chief Executive Officer of First Data. "We are pleased
that First Data has been selected as the core transaction card processor in this new expanded relationship with Banc One and
First USA."
First Data Corporation and its business units provide payment systems, electronic commerce and information management
services to financial institutions, merchants, insurance companies, health care providers, public utilities and consumers
worldwide.
First USA, Inc. is a financial services company specializing in the credit card business and is currently the fourth largest among
the domestic Visa and MasterCard issuers with $22.4 billion in managed receivables and 16 million cardholders. The
combination of First USA's operations with Banc One's 17 million cardholders and $12.6 billion in managed receivables will
produce the nation's third largest card operation with 30 million cardholders and assets of $35 billion. First USA is well known
for its low-cost structure, marketing savvy and cutting edge technology.
Banc One Corporation had assets of $101.8 billion and common equity of $8.4 billion at December 31, 1996, and operates
1,502 banking offices. Banc One also owns several additional corporations that engage in credit card and merchant processing,
consumer and education finance, mortgage banking, insurance, trust and investment management, brokerage, investment and
merchant banking, venture capital, equipment leasing and data processing.
Information about Banc One's fourth quarter and full year 1996 financial results and its products and services can be accessed
on the Internet through Banc One's home page at: bankone.com, or through InvestQuest (TM) Fax on demand:
614-844-3860. First USA maintains a site on the World Wide Web at firstusa.com. SOURCE Banc One
Corporation |
