Wells Fargo and Regulus Agree on Wells Fargo’s Purchase of Wholesale Remittance Processing Operations
San Francisco — July 6, 2005
Wells Fargo & Company (NYSE:WFC) said today that Wells Fargo Bank, N.A. has agreed to acquire Regulus Group’s wholesale remittance processing operations. The purchase involves assets of Regulus West, the wholesale remittance processing business unit of Regulus Group. This agreement moves to Wells Fargo the wholesale remittance processing operations it sold to Regulus Group in 1996 and 2000. Details of the transaction, scheduled to close in the third quarter, were not disclosed. “Our goal is to deliver world-class remittance processing technology to all of our wholesale lockbox customers so we can safely and securely save them time and money,” said Keith Theisen, senior vice president of Wholesale Treasury Solutions at Wells Fargo. “We also will leverage Check 21 processing to speed cash availability for our customers and continue to deliver the high level of quality processing our customers enjoy today. With the Regulus acquisition, Wells Fargo will offer customers the largest image-equipped wholesale remittance processing network in the nation, investing in sites coast to coast.” The Check Clearing for the 21st Century Act (Check 21) allows banks to use substitute check images for clearing which can be transmitted electronically. In a recent industry survey, Wells Fargo received grades of A or A+ in all remittance processing categories from commercial banking customers, including those processing sites handled by Regulus. The survey ranks companies on their speed and accuracy of remittance processing and reporting, timeliness of receiving images and quality of images. Wells Fargo and Regulus will continue to maintain a retail remittance processing and bill print relationship. “This transaction marks an important strategic step for both Wells Fargo and Regulus,” said Kathy Hamburger, Regulus Group President and COO. “The buy-back of the wholesale remittance business allows each company to concentrate on its core services, along with leading the market with innovative transactional offerings. This sale supports Regulus’ strategic goal in developing and enhancing electronic solutions that complement our commitment to retail remittance and bill presentment services to Wells Fargo and other companies. “Regulus will emphasize our Transactions² (T²) approach that aggregates information from billing and payment sources to solve business issues through data-driven solutions. By combining technology with data, Regulus adds another impressive layer of electronic functionality to its core bill print and retail payment services. We are extremely excited about the tremendous opportunity these new T² services give us to build our leading position with not only Wells Fargo, but also other premier customers in the marketplace,” said Hamburger. Regulus West was formed in 1996 as a joint venture between Regulus Group and Wells Fargo. At that time, Regulus Group acquired Wells Fargo’s remittance processing business and facilities. Again in 2000, Regulus bought Wells Fargo’s remittance processing sites. Today’s announcement transfers wholesale remittance processing operations back to Wells Fargo. Regulus will continue to provide retail remittance processing services to Wells Fargo and other companies at sites in Los Angeles, Calif.; Tampa, Fla.; Chicago, Ill.; Greenbelt, Maryland (Washington, D.C.); Rochelle Park, N.J.; and Dallas, Texas. The wholesale remittance processing facilities purchased by Wells Fargo: Phoenix, Ariz.; Fremont, Calif.; Los Angeles, Calif.; Denver, Colo.; Fort Wayne, Ind.; Des Moines, Iowa; St. Paul, Minn.; Omaha, Neb.; Albuquerque, N.M.; Portland, Ore; Dallas, Texas; Seattle, Wash. and Milwaukee, Wisc. “Our customers can expect business as usual during their transition to Wells Fargo and improved product offerings,” said Theisen. “Wells Fargo will continue to provide billing and servicing of customer relationships along with delivery of management information and check images through Wells Fargo’s Commercial Electronic Office® (CEO®) business internet portal.”
Wells Fargo Wholesale Banking – with $85 billion in assets, and more than 500 locations coast-to-coast – includes middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, trade services, specialized lending, equipment finance, capital markets activities, and institutional investments. Its Commercial Electronic Office (CEO) internet portal processes more than one million customer account log-ins a month. Wells Fargo’s Commercial Banking Group is #1 in market share for middle market commercial customers in the western United States. Wholesale Banking accounts for about a quarter of the total earnings of Wells Fargo & Company. Wells Fargo & Company is a diversified financial services company with $436 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service. Headquartered in Napa, California, Regulus (www.regulusgroup.com) is the leading U.S. outsourcer of document and remittance processing, servicing 1.9 billion paper and electronic items annually for Fortune 50 customers, and is the only single-source provider of both document and remittance processing. Regulus provides an end-to-end solution covering every aspect of accounts receivable management from the point when a corporation releases a billing-file for invoicing to the posting of the associated payment, and thereafter in the support of customer care and collections. By combining the billing and remittance processes and the data generated through both, Regulus is able to offer unique, value added services to its clients and to optimize the delivery of its core billing and remittance services.