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

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