IT services firm Electronic Data Systems Corp said Tuesday that it is in talks to sell off its community banking business to Willis Stein & Partners, a private equity investment firm that focuses on middle-market companies. EDS said a definitive agreement has already been signed and the deal is expected to close before the end of the year, although no financial terms were disclosed. Earlier this week, Willis Stein struck a deal to acquire the publishing unit of Ziff-Davis Inc for $780m in cash.
The new company will be an independent entity based in the Dallas, Texas, area. It will begin business as one of the top five IT providers in the community banking market, with over 500 customers. Ray Maturi, EDS’ current community banking division leader, will serve as its president and chief executive officer. EDS said it made the decision to sell the unit because the market was no longer part of its core growth strategy, although it still plans to serve the market through a partnership with the new company.
