easybank, an Austrian direct bank, has agreed to acquire SIX’s commercial issuing business in Austria and the issuing support for Austrian banks for an undisclosed sum.
Commercial Issuing, which refers to the issuing of credit and prepaid cards, was acquired by SIX as part of the purchase of PayLife Bank. The business operates under the name PayLife.
easybank plans to make additional investments in the business.
“The acquisition is another important step for easybank continuing to be leading direct bank in Austria and will thus make a significant contribution to the expansion of its core business,” SIX noted.
The card processor also said that the commercial issuing business does not align with its strategy, and that it will now focus on its role as a B2B service provider and strengthen its merchant business and transaction processing businesses.
Around 150 staff from SIX will join easybank as part of the deal. The deal is expected to be concluded in the second half of 2017, subject to regulatory approvals.
However, SIX will retain its acquiring business in Austria and the processing business for Austrian banks and will expand these operations as its core business.