Rumors of the sale of all or part of Elan Financial Services were resolved today with the announcement by Fiserv Inc. that it will acquire the debit card processing, ATM managed services and MoneyPass surcharge-free network of the U.S. Bancorp-owned company.

The $690 million acquisition does not include the Elan credit card issuing and corporate payments business units of U.S. Bancorp.

According to a press release, the acquisition will deepen the presence of Fiserv in debit card processing and expand its mobile and digital payments offerings for consumers and businesses.

The transaction will build on Fiserv's card services business, expanding its suite of solutions in areas such as ATM managed services. The addition of MoneyPass, the second largest surcharge-free network in the U.S. with access to more than 33,000 ATMs nationwide, will further strengthen the company's market position, the release said.

Fiserv will offer Elan clients additional services that include risk management solutions, the Accel debit payments network and enhanced debit platform capabilities.

"We continue to see opportunities for financial institutions to enhance the card-based payments they provide to their customers in an always-on, anytime access world," Fiserv president and CEO Jeffery Yabuki said in the release. "This acquisition expands our capabilities and provides additional expertise, which together should enhance the value we provide our clients. We look forward to welcoming the Elan team to Fiserv."

After an evaluation of this business unit, U.S. Bancorp made the strategic decision to sell the business. "We believe this sale is the right thing to do for the bank and our customers," said Tim Welsh, vice chairman, Consumer Banking Sales and Support, U.S. Bank. "Our customers will now benefit from the long-term commitment Fiserv has for this business and its clients and U.S. Bank will benefit as we continue to reinvest in our core businesses."

The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close in the fourth quarter.