Metavante Makes Government Move with Deal for Link2Gov

Metavante Corp., which through acquisitions has been steadily building a major franchise in processing electronic transactions for multiple constituencies across card, check, and automated clearing-house channels, today announced it is buying Link2Gov Corp., a 10-year-old processor of payments for governmental agencies, utilities, and health-care entities on the Internet and at the point of sale. Terms of the deal, which is expected to close by year's end, were not disclosed. The acquisition represents the latest in a string of deals Milwaukee-based Metavante has consummated in the past 18 months in electronic transaction processing, including its purchases of the NYCE electronic-funds transfer network and of Advanced Financial Solutions Inc., including AFS's Endpoint Exchange image-exchange network for electronic check processing. The deal also follows by two months news of the acquisition of BillMatrix Corp., a processor of electronic bill payments, by Fiserv Inc., a major Metavante competitor (Digital Transactions News, July 28). Nashville, Tenn.-based Link2Gov, which processes parking fines up to payments to the Internal Revenue Service via cards and the automated clearing house, extends Metavante's franchise in the field of governmental transactions. “As government entities work toward providing the convenient payment options consumers seek, Metavante looks to become a successful participant in this growing segment,” said Frank R. Martire, president and chief executive of Metavante, in a statement. The company also cited Link2Gov's existing base of governmental merchants as part of the strategy behind the deal. “Link2Gov's established merchant relationships augment our existing merchant-acquiring business,” said Frank D'Angelo, president and chief operating officer for Metavante Payment Solutions Group, in a statement. Also attractive to Metavante are Link2Gov's co-branded card deals with American Express Co., MasterCard International, and Visa USA, and its ownership of PAY1040.com, the federal tax payment site. Metavante is a wholly owned subsidiary of Marshall & Ilsley Corp., a Milwaukee banking company.