Discover to purchase PULSE - EFT mega merger

RIVERWOODS, Ill. and HOUSTON — Discover Financial Services, a business unit of Morgan Stanley (NYSE:MWD), and PULSE EFT Association (PULSE) have signed a definitive merger agreement.

Discover Financial Services will acquire PULSE for an aggregate purchase price of approximately $311 million and other strategic value.

The merger agreement, which is subject to regulatory and PULSE member approval, is expected to close in approximately 60 days.

"We believe the combination of the PULSE and Discover networks will create a leading electronic payments company offering a full range of products and services that will represent an attractive choice for financial institutions, merchants and consumers," said David W. Nelms, chairman and chief executive officer of Discover Financial Services. "Together, we intend to be a robust competitor in the important and rapidly growing debit market."

Nelms added, "The combined entity will provide financial institutions of every size and type with a full-service debit platform and a complete product set, including credit, signature debit, PIN debit, gift card, stored value card and ATM services."

PULSE will become a business unit of Discover Financial Services and will retain its brand, pricing and operating platform as well as its management team, staff and Houston headquarters.

Stan Paur, PULSE president and chief executive, said, "We believe that PULSE's experience in debit, combined with Discover's signature capabilities, will create a highly appealing alternative for small to large institutions across the country."