FIRST USA COMPLETES PREVIOUSLY ANNOUNCED ACQUISITION OF MAGROUP, INC.
DALLAS, Nov. 1 /PRNewswire/ -- First USA, Inc. (NYSE: FUS), today announced that it has completed its acquisition of MAGroup, Inc., in a stock transaction valued at approximately $10.5 million. MAGroup, Inc., provides electronic draft capture and related accounting services for more than 6,000 merchants in connection with the clearing and settlement of credit card transactions. For the 12 months ended June 30, 1993, MAGroup processed approximately 19 million credit card authorizations. Privately held and based in Tucson, Ariz., MAGroup provides services under several trade names, including MagCard. First USA previously announced a definitive agreement to acquire MAGroup on Oct. 13. The acquisition involved the exchange of 145,985 shares of First USA common stock for all of the stock of MAGroup, Inc. The transaction is expected to be additive to First USA's earnings per share in fiscal year 1994 and will be accounted for as a pooling of interests. MAGroup will retain its name and will be operated by First USA Merchant Services, Inc., a subsidiary of First USA, Inc., and the nation's sixth largest provider of credit card authorization, clearing and settlement services. MAGroup's founding executives will remain associated with the company during a transition period. First USA expects to retain existing MAGroup employees and to expand the Tucson operation. First USA, Inc., is a financial services company specializing in the credit card business and is among the largest providers of Visa and MasterCard services in the nation. First USA, Inc.'s two principal operating units are First USA Bank and First USA Merchant Services, Inc. First USA Bank provides Visa and MasterCard services nationwide and had more than 4.8 million credit cards issued at Sept. 30, 1993. First USA Merchant Services, Inc. processed $10.2 billion in credit card sales during the 1993 fiscal year. -0- 11/1/93 /CONTACT: George A. McCane of First USA, Inc., 214-746-8547/ (FUS)
CO: First USA, Inc.; MAGroup, Inc. ST: Texas IN: FIN SU: TNM
MP -- NY067 -- 9216 11/01/93 14:10 EST
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|Date:||Nov 1, 1993|
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