Bid­vest ac­quires 100% of First Data Re­sources South Africa

The Star Early Edition - - NEWS - Sandile Mchunu

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.

PHOTO: LEON NI­CHOLAS

Bid­vest is ex­pand­ing its busi­ness. A bank branch in Sand­ton, Jo­han­nes­burg.

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