AIB Group PLC on Friday said it has agreed to sell its minority stake in AIB Merchant Services to Fiserv Inc, ending a long-standing joint venture between the two firms.
AIB Merchant Services, founded in 2007 as a joint venture between the Dublin-based lender and Milwaukee, Wisconsin-based financial services technology firm Fiserv, is one of Ireland’s ‘largest’ payment solution providers and among the largest e-commerce acquirers in Europe.
AIB currently holds a 49.9% stake in the payments business, which it has agreed to sell to its partner Fiserv. The transaction is expected to be completed later this year, pending regulatory approvals.
Neither AIB nor Fiserv disclosed that price that Fiserv will pay for the stake, but AIB said the sale is anticipated to deliver a 35 basis point boost to AIB’s common equity tier 1 capital ratio. The Irish Times newspaper said this equates to about €215 million.
In 2024, AIB recorded €34 million in income from the venture under its equity-accounted investments.
AIB Chief Executive Officer Colin Hunt said Fiserv is well-positioned to continue growing AIB Merchant Services, and AIB will maintain a commercial relationship with the business by referring customers in need of merchant services.
‘Following a successful joint venture partnership, we believe Fiserv has the commitment, experience and innovative technical solutions to grow AIBMS and that our customers will continue to be well-served under their sole ownership,’ Hunt said.
AIB shares were up 0.3% at 600.00 pence in London on Friday morning. Fiserv shares edged lower to $165.35 in after-hours trading in New York on Thursday, having closed up 0.7%.
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