First Data Acquires Gift Card Services, Inc.; Addition of GCS Complements Existing Stored-Value Ventures
biz.yahoo.com
DENVER, Jan. 22 /PRNewswire-FirstCall/ -- First Data Corp. (NYSE: FDC), a leader in electronic commerce and payment services, today announced that it has acquired Gift Card Services, Inc. (GCS), a provider of stored-value gift cards to small and mid-sized retailers. Financial terms were not disclosed.
Formed in 1994, Tulsa-based GCS offers a wide range of gift card services including 24 hour client support and proprietary software featuring database management, customized reporting and on-line transaction processing. GCS gift cards are reloadable and are offered in either fixed or variable denominations. GCS allows the small to mid-sized retailer to create customized gift card programs, eliminating many of the expenses involved in operating an in-house, paper-based gift certificate program.
The acquisition of GCS will complement First Data's ValueLink® gift card business. Already a leader in stored-value card programs, ValueLink currently serves large national and regional merchant accounts. The addition of GCS strengthens First Data's position in the gift card business by tapping into a new market segment.
``The depth and breadth of First Data's experience in stored-value will be a real benefit to GCS, allowing us to grow our business and expand our market share,'' said Byrne Webb, chief executive officer, GCS. ``Teaming with First Data means that GCS will have access to a wide variety of additional resources. This will allow us to offer our customers a broader range of services, giving small to medium-sized companies the same advantages currently available to large retailers in the stored-value market.''
``The stored-value/gift card business is an emerging market with potential for explosive growth,'' said Michael Yerington, president, Western Union North America, the First Data subsidiary that manages the ValueLink and GCS businesses. ``The addition of GCS to the First Data family of businesses allows us to leverage their expertise in the small to mid-sized merchant market with our experience in managing larger, national accounts. Its complementary capabilities and strengths make GCS a great fit for our business.'' |
