Through a recent agreement,
Heartland Payment Systems
) and ABM Parking Services, a subsidiary of
ABM Industries Incorporated
), 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
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
HEARTLAND PAYMT (HPY): Free Stock Analysis
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