AIB has formed a new joint venture with First Data Corporation to buy Irish fintech payments business Payzone for €100m from Carlyle Cardinal Ireland.
The new joint venture will be 75% owned by AIB and 25% owned by FDC.
Payzone provides specialised payment services in Ireland facilitating consumer payments by cash and card for every day needs.
It services more than 300,000 registered consumers in over 7,000 retail outlets throughout Ireland.
Under the terms of the deal, Payzone will continue to be led by its chief executive Jim Deignan and its chief financial offier Nigel Bell, who will remain as shareholders in the business.
AIB said the proposed deal is consistent with its strategy to make selective investments to evolve its customer service and product proposition in its core market.
"For AIB, this transaction means acquiring significant fintech capability and Payzone's substantial payments footprint in Ireland," commented AIB's chief executive Colin Hunt.
"This will allow AIB to continue to evolve and enhance our customer offering, enable us to pioneer digital ecosystem products and services and represents growth potentialn," he added.
AIB said that completion of the deal remains conditional on the satisfaction of customary conditions, including competition clearance.