AIB Group announces sale of AIB Merchant Services
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6 June 2025 |
AIB Group plc announces sale of minority shareholding in AIB Merchant Services
AIB Group plc ("AIB") today announces that it has reached agreement on the sale of its minority stake in AIB Merchant Services ("AIBMS") to Fiserv, Inc. ("Fiserv") (the "Transaction"). Founded in 2007, as a Joint Venture(1) (JV) between AIB and Fiserv, AIBMS is one of Ireland's largest payment solution providers and one of Europe's largest e-commerce acquirers.
AIBMS has had a strong financial performance over the past number of years and is well-positioned for the future. Considering the evolution of the business and the strategic priorities of both AIB and Fiserv, AIB has reached an agreement to sell its minority shareholding of 49.9% to its JV partner Fiserv.
Upon completion, the Transaction is expected to result in a circa 35bps positive impact on AIB's CET1 capital. In 2024, AIB recognised income of €34m relating to AIBMS in its income from equity accounted investments line.
Merchant card acquiring services are important for many of our existing customers and AIB will continue to work with AIBMS and Fiserv by referring AIB customers who require these services to support them in their business needs.
Colin Hunt, Chief Executive Officer of AIB, said:
"Following a successful Joint Venture partnership, we believe Fiserv has the commitment, experience and innovative technical solutions to grow AIBMS and that our customers will continue to be well-served under their sole ownership. Recognising the strength of the AIB customer franchise, we are pleased to support our business customers by maintaining a close on-going relationship with Fiserv. AIB continues to implement its strategy at pace, with strong progress in each of our three focus areas: Customer First, Greening our Business and Operational Efficiency and Resilience"
The Transaction is expected to be completed later this year subject to all relevant regulatory approvals and customary closing conditions.
Notes:
1) AIB's investment in AIB Merchant Services is classified as an associate and is accounted for using the equity method in AIB's financial statements
-Ends-
Contact details:
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Niamh Hore |
Will Goodbody |
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Investor Relations |
Media Relations |
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Tel: +353-86-3135647 |
Tel: +353-86-8502204 |
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email: niamh.a.hore@aib.ie
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email: will.r.goodbody@aib.ie
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Forward Looking Statements
This document contains certain forward looking statements with respect to the financial condition, results of operations and business of AIB Group and certain of the plans and objectives of the Group. These forward looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'may', 'could', 'will', 'seek', 'continue', 'should', 'assume', or other words of similar meaning. Examples of forward looking statements include, among others, statements regarding the Group's future financial position, capital structure, Government shareholding in the Group, income growth, loan losses, business strategy, projected costs, capital ratios, estimates of capital expenditures, and plans and objectives for future operations. Because such statements are inherently subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking information. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. These are set out in the Principal risks on pages 17 to 20 in the 2024 Annual Financial Report. In addition to matters relating to the Group's business, future performance will be impacted by the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively. Future performance could also be impacted by geopolitical tensions and global conflict. Any forward looking statements made by or on behalf of the Group speak only as of the date they are made. The Group cautions that the list of important factors on pages 17 to 20 of the 2024 Annual Financial Report is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and events when making an investment decision based on any forward looking statement.
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