October 9, 2000        

First Data, iFormation Join Forces With Electronic-Payment Venture By DANIEL MACHALABA  Staff Reporter of THE WALL STREET JOURNAL ATLANTA -- First Data Corp. and iFormation Group are teaming up to build an electronic-payment processor for Internet transactions in a field already crowded with ventures further ahead in development. The new venture, eONE Global LP, was announced Monday. First Data and iFormation are committing nearly $600 million in cash and assets to the venture, which proposes to develop and operate payment processing for the business-to-business, business-to-consumer, business-to-government and person-to-person Internet marketplaces. First Data is contributing certain operating businesses and interests in Internet payment-related ventures at a total value of $360 million for a 75% equity interest in the new company. IFormation Group, New York, a partnership of Boston Consulting Group, General Atlantic Partners LLC and Goldman Sachs Group to develop new online businesses, is contributing $135 million in cash for a 25% equity interest. In addition, iFormation and First Data have committed another $100 million in cash in proportion to their ownership levels in eONE Global. The new venture, though, lags behind such developments as a venture by CheckFree Corp. and Bank of America Corp., as well as another payment processor backed by three banks: First Union Corp., Wells Fargo & Co. and Chase Manhattan Corp. But First Data is counting on its wide distribution network, with more than two million merchants and 1,400 financial institutions, to give it an edge. First Data is the largest credit-card processor in the U.S. and also owns Western Union, a money wire-transfer company. "We think we're the best one to handle electronic payments in the Internet world, because we're the largest processor of electronic payments in the physical world," said Ric Duques, First Data's chairman and chief executive officer. Mr. Duques, 57 years old, will become chairman of eONE Global in addition to continuing his positions at First Data. Garen K. Staglin, 55, who has been involved in developing businesses and the management and growth of information-technology companies since 1971 and has been a First Data director since 1992, will be president and CEO of eONE Global. Mr. Staglin said eONE Global will be the only major player with comprehensive offerings of products and services across all four segments of the Internet-payments industry.