New payment solutions company formed by BofA and First Data

Bank of America and First Data Corp. made an announcement today that they have partnered to launch a new company to provide next-generation payments solutions to merchants ranging from small business to commercial and corporate clients worldwide. The new entity to be known as Banc of America Merchant Services, LLC will be delivering innovative payments solutions including credit, debit and prepaid cards to merchant loyalty, check and eCommerce payments.

The seat of the chief executive at the newly formed Banc of America Merchant Services will be taken by Thomas Bell, chief strategy officer and president of First Data's financial services business.

"The combination of First Data's world-class technology and industry experience with the power of Bank of America's brand and branch referral channel will enhance Banc of America Merchant Services' position as an efficient and innovative player in the payments market," Bell said. 

Among other things merchants will be offered a range of loyalty and prepaid programs, along with mobile commerce and check solutions that will drive return traffic to their stores and provide their consumers with the security, convenience and rewards they have come to expect, report the official statement.

According to the companies, new Banc of America Merchant Services will be about 46.5% owned by Bank of America and 48.5% by First Data, with the remaining stake held by Rockmount Investments, LLC, an investment vehicle controlled by a third party investor.

Bank of America Merrill Lynch acted as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal advisor to Bank of America. Sutherland Asbill & Brennan and Perkins Coie acted as legal advisors to First Data.