U.S. Bank, the lead bank and subsidiary of U.S. Bancorp (NYSE:USB), and Schneider National, Inc., the nation’s largest truckload provider, have announced that U.S. Bank will purchase Schneider Payment Services (SPS), a division of Schneider National, Inc.
The acquisition is anticipated to close on July 1, 2006, at which time the new business will operate as U.S. Bank Freight Payment Services, rounding out PowerTrack’s ability to service freight payment customers by adding a fully-managed solution. PowerTrack has traditionally focused on technology that can be used internally within a company to automate the pre-payment audit process, facilitating fast, accurate electronic payments.
The acquisition adds in excess of $7 billion in freight payments to the PowerTrack portfolio, making U.S. Bank PowerTrack the clear leader in freight payments. In addition, Schneider Logistics will utilize U.S. Bank Freight Payment Services and PowerTrack as the payment provider for its customers in North America. Terms of the purchase were not disclosed.
“We are excited about adding the experience of 200 freight payment professionals to the PowerTrack team,” said Kevin Armstrong, senior vice president and general manager for PowerTrack. “In addition, PowerTrack will add the capability to provide a fully-managed freight payment solution for our customers as well as the ability to handle larger volumes of paper invoices.”
“This purchase is significant not only because it makes us the world’s leading provider of freight payments, but also because the purchase supports U.S. Bank’s strategy to build fee-based revenue opportunities from our payments businesses and opens a new stream of business opportunity as we offer our full suite of payment and banking services to these customers,” said Robert Abele, president of U.S. Bank Corporate Payment Systems.
“Schneider Payment Services has achieved wide recognition as a leader in the North American freight audit and payment marketplace and has created great value for its diverse customers. We believe this transaction will create a clear leader in the freight audit and payment business and will create great opportunities for the associates and customers,” said Chris Lofgren, president and CEO of Schneider National, Inc.
About Schneider National Inc.
Schneider National Inc. is a premier provider of truckload, logistics and intermodal services. Serving more than two-thirds of the FORTUNE 500(R) companies, Schneider National offers the broadest portfolio of services in the industry. The company’s transportation and logistics solutions include One-Way, Intermodal, Transportation Management, Dedicated and Bulk. With wholly owned subsidiaries Schneider Logistics, American Port Services and American Overseas Air Freight, Schneider National is the only truckload carrier to offer customers end-to-end domestic and international logistics solutions.
Headquartered in Green Bay, Wis., Schneider National has provided expert transportation and logistics solutions for more than 70 years. A $3.5 billion company, Schneider National conducts business in more than 28 countries in North America, Europe and Asia, and continues to grow its international service offerings. For more information about Schneider National visit http://www.schneider.com or call 800-558-6767.
About U.S. Bank PowerTrack
PowerTrack processes more than 25 million electronic freight documents annually with more than 25,000 registered users from 3,300 locations worldwide. Currently, PowerTrack facilitates electronic freight payments in more than 35 countries and facilitates immediate payments to carriers for all transportation modes, including motor freight, air, rail, and ocean services. In addition to settlement capabilities in local currencies, the European Service Center provides a complete global freight payment solution for PowerTrack customers.
PowerTrack is a patented, electronic, business-to-business payment network from U.S. Bank Corporate Payment Systems that greatly expands the concept of EIPP and invoice presentment. Some of the country’s largest commercial and government organizations use PowerTrack to streamline business-to-business payment processes by enabling robust pre-payment audits, real-time exception identification, collaborative resolution, and integrated accounts payable and accounts receivable processing. PowerTrack pays sellers quickly while maintaining generous payment terms for buyers, reduces collections risk for sellers, and delivers exceptional control for cash managers. To learn more about PowerTrack Freight Payments or for a demonstration, call 800-417-1844 or visit PowerTrack online at http://www.powertrack.com.
U.S. Bank Corporate Payment Systems is part of U.S. Bancorp (NYSE:USB). With assets of $210 billion, U.S. Bancorp is the 6th largest financial holding company in the United States. The company operates 2,430 banking offices and 4,941 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at http://www.usbank.com.
