EDS Sells Credit Union Services GroupEDS Sells Credit Union Services Group
The move is part of company's plan to raise cash by selling units peripheral to its IT outsourcing business.
July 14, 2003
EDS said late Friday that it has sold its credit union services group to data-processing company Fiserv Inc. for $218 million in cash.
EDS's Credit Union Industry Group provides debit card and transaction processing, electronic banking and lending, and online bill-payment services to about 1,000 credit unions nationwide. The group generates about $115 million in revenue. As a result of the deal, about 450 EDS employees will transfer to Fiserv. Scott Butler, president of the group under EDS, will retain that role at Fiserv. The sale is part of EDS's effort to raise cash by selling units it sees as peripheral to its IT outsourcing business. To date, the company says the campaign has raised about $544 million in cash. Fiserv officials say the company has been seeking a larger footprint in the credit-union business.
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