American Express Co. (NYSE: AXP) and GE Money, part of General Electric (NYSE: GE), have announced that American Express will purchase Corporate Payment Services, GE’s commercial card and corporate purchasing business unit.
This unit processes corporate credit cards for more than 300 large clients, and GE itself will continue on a multi-year basis to be the units single largest client. The Corporate Payment Services unit generated over $14 Billion in 2007 total purchase volume around the globe and it maintained some $1.1 billion in receivables at year-end 2007, while billed business has seen a compounded annual growth rate of 18% over the last five year period.
The sale is listed as being $1.1 Billion in cash, so while it is alarge deal it is a drop in the bucket for these two DJIA components.The sale is also expected to be completed by the end of the month.
Jon C. Ogg
March 27, 2008