WELLS FARGO TO SELL 11 REMITTANCE PROCESSING SITES IN JOINT VENTURE WITH REGULUS GROUP
SAN FRANCISCO — April 21, 2000
Wells Fargo & Company (NYSE:WFC) and Regulus Group LLC said today they have agreed to expand their four-year alliance with the sale of Wells Fargo's 11 remaining remittance processing sites to Regulus.
The former Wells Fargo established a similar alliance with Regulus when it sold its remittance processing sites to Regulus in 1996. As in that agreement, Regulus will be responsible for the facilities, including all their employees, equipment, and other assets. Affected Wells Fargo team members will remain in their current positions and become Regulus employees.
"This is a clear example of a compelling need to expand a proven best practice that we believe is in the long-term best interests of our team members, customers, communities and shareholders," said Paul Watson, head of Wells Fargo's Commercial and U.S. Corporate Banking Groups. "Over the past four years, our alliance with Regulus has proven conclusively that partnering with one of the leaders in payments processing can allow us to take greater advantage of the newest and best technology and reduce costs while maintaining world class customer service."
Despite the best practices benefits, said Watson "it's always difficult to have to part with loyal and committed team members. We would not do so if we did not believe that Regulus shares our commitment to people as a competitive advantage. They're committed to providing our valued team members continued opportunities for personal and professional growth with no change in pay, managers, responsibilities and customers as the result of this sale."
As part of the agreement, the two companies will share revenue and responsibility for product development and strategic planning. Wells Fargo will continue to be responsible for customer relationships, sales, marketing, check clearing and information services. The alliance will continue to provide services under the name of Wells Payment Express. Wells Fargo also made an undisclosed equity commitment in Regulus and Regulus will invest in new technology to speed the move from paper to electronics.
The agreement affects 449 Wells Fargo positions at 11 remittance processing sites in Denver (115), Minneapolis (80), Des Moines (77), Phoenix (74), Sioux Falls (49), Fort Wayne (19), Omaha (13), Milwaukee (9), Dallas (6), Davenport (5), and Albuquerque (2).
Remittance processing is a treasury management service for high volume commercial customers that speeds payments to a biller's bank account to reduce float time and processing costs. It also includes data transmission and inter-day balance reporting.
Wells Fargo & Company is a diversified financial services company with $222 billion in assets, providing banking, investments, insurance, mortgage, and consumer finance through 5,310 stores across North America, the Internet (wellsfargo.com ) and elsewhere internationally. Philadelphia-based Regulus Group LLC, founded in 1996, is one of the leading processors of all forms of customer payment transactions. The eleven sites will give Regulus 30 lock box, document print, and electronic information distribution locations nationwide.