The closure of First National Bank of Nevada, HMS' parent bank, had left the merchant services unit in the temporary hands of the FDIC since July 25, 2008. Moneris Solutions' US arm, Moneris US, announced today that it signed an agreement to purchase substantially all of HMS' assets. The acquisition is subject to regulatory approval. The deal is anticipated to close before year-end.
Included in the proposed HMS deal are more than 18,000 merchant accounts, $2.5 billion in annual processing volume and the HMS name, staff and management team.
“We are extremely excited about becoming part of Moneris US,” said Humboldt Merchant Services' president, Ken Musante. “Moneris US is part of one of North America’s largest, most successful payment processors,” Musante added.
The acquisition will mark Moneris US’ entry into the adult market. HMS enjoys a good reputation among affiliates and content providers as a reliable merchant services provider. Visa and MasterCard, the predominant credit cards used online, deem many online accounts that charge membership fees as high risk. Many mainstream banks shy away from approving such accounts. "We are very excited to service this niche market," noted Hilda Tuel, HMS senior vice president of sales. HMS' merchant accounts portfolio includes high-risk merchants, both adult and mainstream.
HMS' history and market experience in the adult community may be behind Moneris' decision to retain HMS' identity and management staff. "We will continue to do business as Humboldt," Tuel told XBIZ. HMS' employees, including staff and management, will become employees of Moneris and will remain based in Eureka, Calif.
Moneris US is the American division of Moneris Solutions, based in Toronto. Moneris is a joint investment between Canadian banking powerhouses Royal Bank of Canada and Bank of Montreal (including Harris Bank). Moneris Solutions was launched in December 2000.
The acquisition is currently being reviewed by regulatory agencies. HMS and Moneris expect to finalize the switch "in approximately 60 to 90 days," Tuel stated.