Through a recent agreement, Heartland Payment Systems (HPY) and ABM Parking Services, a subsidiary of ABM Industries Incorporated (ABM), have extended the duration of their strategic liaison.
Heartland, the sixth largest payments processor of the United States, has been into a joint venture with ABM Parking Services for some time now. The joint venture allows Heartland to process signature debit and credit card transactions at more than 1100 ABM sites throughout the nation. These locations include airports, special event venues, municipalities and other parking facilities. The extension of the contract will entail Heartland to maintain its operations in the existing locations of ABM for several years to come.
The association between Heartland and ABM has been advantageous for both the companies so far. Thus, to optimize the benefits from the prevailing partnership, ABM and Heartland entered the multi-year contract extension.
The long-term relationship of ABM with Heartland entails ABM customers with smooth and stress free payment transactions. We expect that the extended contract will allow ABM to gain more customers owing to these cost effective payment deals.
Operating for 14 years, Heartland offers card processing, school solutions, loyalty marketing services, campus solutions and payroll services to more than 250,000 small and medium sized businesses, and education sites in the nation. Through the extension, Heartland will provide an array of electronic payment services to ABM in the upcoming period, which is expected to enhance its portfolio of services provided.
In order to expand its operations, both Heartland and ABM undertake a number of merger and acquisitions. The latest on the list was the acquisition of the Rochester, New York-based Ovation Payroll, an eminent U.S Payroll outsourcing company, by Heartland to enhance its Heartland Payroll Services business. On the other hand, in November 2012, ABM also completed the acquisition of HHA Services, a leading facility management and food provider to different communities, to expand its New York-based ABM Industries’ presence in the Michigan area and fortify ABM Industries’ health care capabilities enabling it to reach a wider customer base.
Heartland is expected to release its fourth-quarter and full year 2012 earnings results in the first week of February. The Zacks Consensus Estimate for the fourth quarter of 2012 is pegged at 37 cents, up 33.8% year over year. Earnings for the full year 2012 are expected at $1.63, up 47 % year over year.
Heartland currently carries a Zacks Rank #1 (Strong Buy), while ABM carries the Zacks Rank # 3 (Hold).
ABM INDUSTRIES (ABM): Free Stock Analysis Report
HEARTLAND PAYMT (HPY): Free Stock Analysis Report
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