SIGNET SELLS MERCHANT PROCESSING BUSINESS
SIGNET SELLS MERCHANT PROCESSING BUSINESS RICHMOND, Va., Nov. 8 /PRNewswire/ -- Signet Banking Corporation
(NYSE: SBK) announced today that its subsidiary, Signet Bank/Virginia, has sold its merchant credit card processing business to National Data Payment Systems, Inc., a subsidiary of National Data Corporation, an Atlanta based company. Signet's merchant card business handles the processing of credit card charges deposited by 8,000 merchant locations. Merchant customers will continue to make deposits at Signet locations in a servicing and marketing arrangement with National Data Payment Systems, Inc.
Signet expects to recognize a pre-tax gain of approximately $8.5 million on the transaction, which was completed today. David K. Hunt, Senior Executive Vice President, stated that the sale of the merchant processing business would enable Signet to increase its investments in other areas of the credit card business which offer greater potential growth and value to Signet. "The merchant business has been a good business, but has not been an area of major focus for Signet. This is a scale business which is clearly worth more to someone with higher volumes. Our relationship with National Data is a strategic partnership that enables us to continue to meet the Bankcard needs of our merchant customers. We expect to continue to make significant investments in other areas of the credit card business," he said. Signet Banking Corporation is an $11.5 billion organization with 244 full-service banking offices throughout Virginia, Maryland and the District of Columbia. It also offers investment services including municipal bond, government, federal agency and money market sales and trading, foreign exchange trading and discount brokerage, an international operation concentrating on trade finance, and specialized services for trust, leasing, asset based lending, cash management, real estate, insurance, consumer financing and investment banking. -0- 11/8/91 /CONTACT: S. Joseph Ward, Signet Bank, 804-771-7210/ (SBK) CO: Signet Banking Corporation ST: Virginia IN: FIN SU: TNM DF -- CH005 -- 2726 11/08/91 16:41 EST
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|Date:||Nov 8, 1991|
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