Nova Buys a 10,000-Merchant Portfolio from Union Bank

Nova Information Systems, an Atlanta-based transaction processor, announced today it has agreed to acquire a portfolio of 10,000 merchants from Union Bank of California in a deal expected to close by June 30. Pricing and other terms were not disclosed. Nova says the acquisition is expected to add $3 billion in annual credit and debit card processing volume to its system. As part of the transaction, Union Bank, a subsidiary of UnionBanCal Corp., has agreed to funnel merchant referrals to Nova through its network of 284 branches in California, Oregon, and Washington. Most of these branches are in California. Nova, a subsidiary of U.S. Bancorp, already processes for 650,000 merchant locations in the U.S. and Europe.