Fiserv is in negotiations to acquire EDS' credit union industry group.
No further details were made available. The transaction will be subject to regulatory approval.
News of the sale comes as EDS announces plans to lay off 2700 workers, and take a charge of $425 million. The embattled computing company says it expects to raise $250 million in cash from asset sales in 2003.
If the transaction is approved and completed, Fiserv would expect to provide core processing services for about 34% of the credit union segment within the financial services data processing market.
Fiserv contends that the proposed transaction would not adversely affect competition in the credit union business, pointing to other core suppliers such as Jack Henry, Symitar, Harland, Ultradata, OSI, Liberty Fitech, Aurum Technologies.
In addition, says Fiserv, as credit unions increasingly compete for customers from banks, thrifts, mortgage banks and other financial institutions, traditional bank-oriented core processing providers increasingly serve credit unions as well.