Deutsche Bank is to sell its European merchant acquiring business to US processor EVO Payments International.
Under the proposed transaction, EVO will acquire 100% of Cologne-based Deutsche Card Services,which currently operates in 39 European markets. It provides merchant acquiring services to multi-national clients of Deutsche Bank including online, point-of-sale and ATM, as well as other related services.
As part of the deal, EVO Payments is to work with the German bank's global transaction banking division on joint marketing efforts under a long-term relationship.
Ray Sidhom, chairman of EVO Payments International, says: "Through supporting the Deutsche Bank relationship, we are confident in our ability to rapidly expand our market share."
Deutsche Bank already has an existing working relationship with EVO Payments in the US.
The bank's head of global transaction banking Werner Steimuller insists that the group is still committed to providing card acquiring services to its merchant client base.
"Our main goals with this transaction were to find a partner that we could trust to continue to deliver high quality products and services to our clients as well as realizing the significant long-term potential of the Deutsche Card Services business," he says. "We feel that we have achieved both with EVO Payments.
The transaction is subject to regulatory approvals. Financial terms have not been disclosed.