BP Divests Pay Point

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BP Divests Pay Point

07/31/2002
HOUSTON -- Denver-based First Data Corp., an e-commerce and payment services company, will expand its presence in the convenience store and petroleum marketing industry by acquiring the PayPoint Electronic Payment Systems from London-based BP plc.

Financial terms were not disclosed. The acquisition is expected to close in the third quarter.

A PayPoint spokesman said the sale is not part of a move by BP to sell off assets, but represented "selling off a unit that wasn't part of its core business," according to Dow Jones.

PayPoint is one of the largest processors of personal identification number (PIN)-based debit transactions and a leading national electronic payment processor. The company has contracts with companies such as Albertson's, Costco and McDonald's.

"Both First Data and PayPoint clients will benefit from the combined strength of First Data and PayPoint," said Scott Betts, president of First Data Merchant Services in a statement.

First Data, which recorded revenue of $6.45 billion and operating earnings of $1 billion last year serves approximately 2.8 million merchant locations. The company employs 29,000 people worldwide, the report said.