NEW YORK and ATLANTA, Aug. 24, 2017 /PRNewswire/ -- American Express and InComm today announced they have entered into an agreement for InComm to acquire the exclusive distribution rights of American Express's prepaid reloadable and gift card products in the U.S. InComm will become the exclusive program manager and processor, and American Express will remain the issuer and network for all products involved in the transaction. InComm will also acquire the Serve technology platform and other assets related to the American Express prepaid reloadable and gift card products business.
"After considerable deliberation, we have decided to partner with InComm as we start a new chapter for our prepaid business," said Stefan Happ, Executive Vice President & General Manager, Global Prepaid & Alternative Payments. "InComm's expertise and deep knowledge of the industry will be a great asset as we look to bring our best-in-class prepaid and gift card products to even more customers."
The American Express prepaid products included in the transaction include U.S. gift cards, B2B rewards and incentives, tax disbursements and general purpose reloadable (GPR) cards. These products will further expand the already wide selection of physical and digital products InComm offers its distribution partners. The acquisition of the Serve technology platform will also expand InComm's processing capabilities.
"This is a very exciting deal for us, our retail partners and the new distribution partners this transaction will bring us," said Brooks Smith, InComm CEO. "We are always striving to add new and exciting products to our portfolio so our partners can better meet the needs of their customers. With American Express's suite of prepaid products, we are adding yet another popular and highly reputable brand to our ever-growing portfolio. Through our 15-year relationship with American Express, which includes being the first to distribute and activate their gift card in retail, we have gained a deep expertise that will allow us to be great stewards for their brand."
The deal is expected to close the first quarter of 2018, subject to completion of documentation and customary closing conditions.
About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, Plenti rewards program, travel services, gift cards, prepaid cards, merchant services, Accertify, corporate card, business travel, and corporate responsibility.
Leveraging deep integrations into retailers' point-of-sale systems, InComm provides connectivity to a variety of service providers that allow consumers to conduct everyday business at more than 500,000 points of retail distribution. Whether those consumers are activating prepaid products, paying bills, enjoying real-time discounts through a membership card, purchasing digital goods in-store or adding funds to an online account, InComm is there to provide unique gift-gifting opportunities, cater to on-the-go shoppers, deliver added value through loyalty programs and serve cash-based consumers. With 206 global patents, InComm is headquartered in Atlanta with a presence in more than 30 countries. Learn more at www.incomm.com or connect with us on www.twitter.com/incomm, www.facebook.com/incomm, www.linkedin.com/company/incomm or www.incomm.com/blog.
Information Related to Forward-Looking Statements
This release includes forward-looking statements that reflect management's expectations about future events, including expectations regarding the transaction closing. These forward-looking statements are subject to risks and uncertainties. The words "expect," "anticipate," "intend," "plan," "will," "may," "should," "could," "would," and similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. American Express undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the parties' ability to satisfy the closing conditions, the underlying assumptions related to the transaction proving to be inaccurate or unrealized and InComm's ability to integrate Serve's technology platform. A further description of these and other risks and uncertainties can be found in American Express' Annual Report on Form 10-K for the year ended December 31, 2016 and its other reports filed with the SEC.