OREANDA-NEWS. July 09, 2008. Hansapank, SEB Pank and Sampo Pank as the owners of the Bank Card Centre (Pankade Kaardikeskus, PKK) signed an agreement to sell the PKK to Northern Europe Transaction Services (NETS), the leading Scandinavian mediator of bank card transactions, reported the press-centre of Hansapank.

"We jointly reviewed the future development possibilities for PKK and realized that the ownership structure of the bank card centre needs to be changed," explained Mr. Raulis Uksvarav, head of the bank card transactions business division of Hansapank. "The current owners are all members of the Scandinavian financial groups, which continue to focus more on their core activities - such as provision of financial services - and leave the provision of the supporting services for the professionals in the field.

Processing of the bank card transactions is a type of service which in the long run will not remain within the scope of the core business of the banks. At the same time, the banks will continue to offer bank cards to their clients and servicing the merchants within their main business."

Since the foundation of the PKK, the use of the bank cards in Estonia has developed rapidly. One of the most crucial stages in the development of the PKK has been the launch of the cross usage of the payment terminals and the ATMs in 1996. This extended the possibilities of the card holders to pay for goods and services and use the ATMs considerably.

"Considering the unique role of the PKK, the strategic interests of the banks and their dependence on this service, it is clear that the bank card centre forms part of the banks' own services and its continuance is critical for the results of the future periods," said Mr Meelis Nurk, vice head of the SEB’s e-Technology division.

"We are therefore pleased that NETS as leading mediator of the bank card services in the Nordic countries with an ambition to gain a strong position in the Baltics, Germany and Poland as well, is the purchaser of the bank card centre. Strong and stabile partner assures an ongoing co-operation both for us as well as the clients of all Estonian banks.”

Today, PKK has achieved a unique role on the Estonian market - the bank card centre processes both domestic and foreign transactions. In addition, the PKK offers business-critical services to the banks. PKK was established in 1993 by two banks at the moment when Estonia was only beginning to introduce the bank cards. The main purpose of PKK is to provide supporting services in the field of electronic banking, including operation as a trustworthy, secure and impartial clearing centre for inter-bank transfers settlements.

PKK was created to provide technical support for the introduction and issuing of international payment cards in Estonia and for the cross usage of domestic bank cards. The creation of the bank card centre fastened considerably the development of the Estonian bank card infrastructure and allowed the banks to share the costs thereof. In 2007, the PKK had a turnover of 4,3 million Euros and made a profit of 1,5 million Euros. Compared to 2006, the profit increased by 23%.

The change of ownership will not affect the daily operation of the PKK and the centre continues to provide services to Hansapank, SEB, Sampo and other Estonian banks. The head of the centre, Mr. Raivo Tinn, and a team of approximately 40 employees will continue their work.

About Northern European transaction Services (NETS):
The NETS alliance, headquartered in Copenhagen with offices in Oslo and Stockholm, is one of the leading European processors of card transactions on behalf of primarily acquirers in the Nordic countries. NETS delivers cost effective solutions, compliant with all international standards and requirements, as well as relevant international and national transaction formats.

The company is equally owned by BBS AS based in Norway and PBS A/S based in Denmark. Owned by Nordic banks, BBS is a leading provider of electronic security, payment and information services. Headquartered in Oslo, BBS has more than 780 employees in offices in Norway, Sweden and Denmark. PBS develops and operates solutions for payment systems and is a leading supplier of payment solutions with 850 employees and offices in Denmark, Sweden and Norway.

In connection with the transaction the law office Luiga Mody Haal Borenius acted as the legal advisers to the sellers and GILD Bankers acted as the financial advisers to the sellers.