Bank of America announced just before year-end that it would sell its 20 percent stake in Unified Merchant Services (UMS) to First Data Merchant Services (FDMS). FDMS currently owns 80 percent of UMS.
The sale is a result of the merger between NationsBank and BankAmerica, now known as Bank of America BA Merchant Services, Inc., (BAMS) is the principal merchant provider for the new combined organization.
NaBANCO, the predecessor of NationsBank and First Data, formed UMS in April 1995. Prior to the merger, UMS combined the resources of First Data with those of NationsBank. "The BankAmerica and NationsBank merger has pooled together a lot of great resources and talent,'' said Patrick Phillips, head of Bank of America Card Services. "BAMS has been a successful, long-term merchant servicer for BankAmerica, and it makes good business sense for us to continue that relationship."
"Banking consolidations have actually benefited our business by expanding the portfolios in our alliance programs, and this purchase of another 20 percent of UMS is an example of that expansion,'' said Charles T. Fote, President and Chief Operating Officer, First Data Corporation.
For further information, visit http://www.firstdata.com or the November 1998 issue of GSQ.
