AIB Group to sell minority shareholding in merchant services business

AIB said it reached an agreement to sell its minority shareholding of 49.9% in AIBMS to its joint venture partner Fiserv

AIB confirmed that there will be no day-to-day change for AIBMS customers as a result of the announcement, and no customer action is required. REUTERS/Clodagh Kilcoyne/File Photo

AIB has announced the sale of its minority stake in its merchant service business to Fiserv. 

Founded in 2007 as a joint venture between the lender and Fiserv, AIB Merchant Services (AIBMS) is one of Ireland's largest payment solution providers and one of Europe’s largest e-commerce acquirers.

The service enables businesses to accept card payments from their customers. AIB confirmed that there will be no day-to-day change for AIBMS customers as a result of the announcement, and no customer action is required.

AIBMS has had a strong financial performance over the past number of years and is well-positioned for the future, AIB said on Friday. 

"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," it added.

Upon completion, the transaction is expected to result in a circa 35 basis point 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.

AIB said it will continue to work with AIBMS and Fiserv by referring AIB customers who require these services to the business. 

AIBMS will continue to operate as AIBMS, under a short-term brand agreement, allowing for an orderly exit of the AIB brand from the business.

Colin Hunt, CEO 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. 

Katia Karpova, Head of the EMEA region at Fiserv, said “We have enjoyed a strong partnership with AIB Group, as together we grew AIBMS into one of the leading acquirers in Europe, and I look forward to continuing to work closely with them to support our mutual clients. 

"Our focus will remain on delivering market-leading solutions to clients of all sizes across Ireland and the broader European market. We are particularly excited for the opportunity to accelerate the local penetration and growth of Clover, the world's smartest point-of-sale system and business management platform.”

The transaction is expected to be completed later this year subject to all relevant regulatory approvals and customary closing conditions.