Bidvest acquires 100% of First Data Resources South Africa
BIDVEST Bank has announced that it has acquired 100 percent of First Data Resources South Africa (FDRSA) for an undisclosed amount. First Data Resources South Africa is the subsidiary of First Data Corporation, a global leader in commerce-enabling technology.
First Data serves 6 million business locations and 4 000 financial institutions in more than 100 countries around the world and powers more than 2 800 payment transactions every second of every day, totalling $2.2 trillion (R29.50trln) in annual transactions.
Bidvest Bank said the acquisition of FDRSA, First Data’s South African acquiring business is in line with its strategy of diversifying its revenue streams to service a broader market and will complement its business banking offering. After the acquisition FDRSA will change its name to Bidvest Merchant Services.
Japie van Niekerk, Bidvest Bank managing director, said the acquisition provided a bolstered offering for its existing banking customers and was a significant building block towards the company expanding its business banking customer value proposition.
Bidvest Bank is a South African commercial bank and is a 100 percent subsidiary of the Bidvest Group. It is a fullyfledged niche bank serving both businesses and individuals.
In the latest annual report for the year to the end of June 2016, the bank reported that total assets grew by 11 percent. The growth was predominantly influenced by an increase in corporate advances and cash balances while consolidated operating income increased by 27.5 percent. At the end of July, Bidvest Group also announced its agreement to acquire 100 percent of Noonan a Dublin-based facilities management and contract cleaning group from Alchemy Partners, for a cash consideration of €175 million (R2.76 billion). The acquisition is subject to South African Reserve Bank approval.
Bidvest Bank said the latest acquisition reflects Bidvest Bank’s effective diversification strategy. “This steady growth over the last 10 years, combined with its prudent lending philosophy, recently saw Moody’s Investor Services, a bond credit rating business upgrade its long-term national scale rating by two units,” the bank said.
The growth was predominantly influenced by an increase in corporate advances and cash balances.
Bidvest is expanding its business. A bank branch in Sandton, Johannesburg.