Fexco provides a range of business-to-business and consumer financial services, including multi-currency credit card processing, tax reclaim, international payments, tourism services, prize bond management and stockbroking. In addition to its Bureau de Change business, the company also operates the Western Union franchises in Ireland, the UK, Spain, Malta and Gibraltar and has been a partner of FDC since 1994. Fexco’s investments in the financial services sector internationally include Global Refund, the world leader in VAT refunding services. In addition, Fexco has invested in two Australian financial services companies, William Noall Group and the Prudential Investment Company of Australia.

A statement from Fexco said: 'The alliance with First Data will enable Fexco to access new merchant and bank customers through First Data’s global distribution system, which includes 1,400 financial institution clients and 2 million merchant locations globally. In addition Fexco will provide a range of processing services to First Data and its customers in foreign exchange and e-commerce payments.'

Brian McCarthy, chairman of Fexco, commented on the deal: 'We very much welcome this milestone investment by First Data in Fexco, which will provide us with tremendous new opportunities to accelerate the growth of our payment processing services globally. We have been working with First Data in Europe for several years and we have developed an excellent relationship with the company and identified many areas of synergy in our operations internationally. Through the commitment of its employees in Ireland and around the world, Fexco has built a very successful transaction processing business in a highly competitive marketplace. This investment by First Data means a huge leap forward to the further globalization of Fexco’s business. We look forward to the exciting opportunities that lie ahead.'

Charlie Fote, FDC president and chief operating officer, said: 'This investment is yet another step in our journey to build a truly international franchise for First Data. We have given ourselves a considerable edge by investing in companies that have complementary competencies, strong operating track records and a depth of local knowledge and relationships. Clearly, Fexco's strong experience in providing multi-currency payment services will complement First Data’s delivery of payment processing services in Europe, but also in the US and beyond.'

The deal, which is subject to regulatory approval, is expected to complete in January 2001.