announced an agreement to acquire Citicorp Electronic Financial Services
Inc. (CEFS), a subsidiary of Citigroup for $380 million in cash.
JPMorgan Chase is targeting a 4th quarter 2003 close for the
CEFS is a leading provider of government issued benefits payments and
prepaid stored value cards used by state and federal government
agencies, as well as stored value services for private institutions. The
acquisition further strengthens JPMorgan Chase's position as a leading
provider of wholesale payment services.
"This acquisition is an extension of our existing core cash management
and payments business," said Lori Hricik, Executive Vice President and
Head of JPMorgan Treasury Services. "The addition of the Electronic
Financial Services business enhances our ability to provide a wide range
of services to public sector clients, which supports our strategy for
growth in this important segment of our industry. We are committed to a
seamless transition that will be transparent to the end users."