Atlanta-based payment processor Elavon has reached an agreement to sell its Mexican business to Santander, the Spanish bank with a deep presence in Latin America.
Elavon, a subsidiary of U.S. Bancorp, said the action would not impact any of its business in the U.S. or beyond, and that local employees in Mexico would join Santander as a part of the deal, which is expected to close pending regulatory approval in the next few weeks, according to a release.
Elavon has been exiting what it sees as non-core markets in a bid to “optimize our existing operations to create value and invest in the future,” said CEO Jamie Walker.
That plan seems to be focused on adding market share in established markets like the U.S., Canada and Europe, rather than delving into riskier emerging countries.
The company offloaded its unprofitable Brazil card processing partnership with CitiBank in 2016. Last November, Elavon bought Sage Pay to grow its operations and customer base in the United Kingdom and Ireland. The Sage Group plc, coincidentally has a major cloud business software presence in Atlanta.
Mr. Walker said Elavon has been happy with its Mexican business’s performance but that the deal will help Elavon and Santander alike with strategic growth.
“This agreement is a mutually-beneficial opportunity that will allow Santander to operate the business holistically and allow Elavon to focus investments in higher growth opportunities in other markets in the United States, Canada and Europe,” he said.