U.S. Bancorp To Acquire Sage Pay, Build Payments Capabilities
Zacks Investment Research | Nov 18, 2019 08:51PM ET
U.S. Bancorp’s (NYSE:USB) subsidiary — Elavon — is buying Sage Pay, a division of The Sage Group (LON:SGE) plc (OTC:SGPYY) . Sage Pay is a renowned payments gateway business in the United Kingdom and Ireland. The deal is subject to necessary regulatory approvals.
The move is expected to help U.S. Bancorp meet the demands of its customers, who are switching toward digital modes of banking and conducting day-to-day activities, much better. Also, the bank is looking for ways to restructure operations with software that includes payments capabilities in order to meet the growing competition.
The acquisition is expected to bolster Elavon’s market share in the U.K. and Ireland. Also, the company will be able to serve small and medium-sized enterprises, where Sage Pay is a highly-trusted payments gateway with a loyal customer base.
“We are a customer-focused company that is helping businesses succeed in a global marketplace that is changing rapidly,” said Hannah Fitzsimons, president and general manager of Elavon Merchant Services, Europe. “This acquisition brings tremendous talent and leading technology to Elavon, which can be leveraged across the European market.”
U.S. Bancorp has made a number of bank acquisitions over the past several years. Prior to the latest buyout, the company acquired Talech, a Palo Alto-based software company, aimed at boosting the bank’s digital expertise, which in turn, will ensure better customer experience.
Moreover, early this year, U.S. Bancorp formed a new digital team, headed by Derek White, chief digital officer of U.S. Bancorp, in an effort to be in sync with the banking sector’s gradual shift toward digitization.
U.S. Bancorp’s investments in innovative product enhancements, services and people have strengthened its balance sheet and fee-based businesses, besides increasing market share. However, it is witnessing persistent rise in expenses.
Shares of U.S. Bancorp have gained 30.3% compared with the Original post
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