American Express and InComm announced they have entered into an agreement for InComm to acquire the exclusive distribution rights of American Express's prepaid reloadable and gift card products in the U.S. InComm will become the exclusive program manager and processor, and American Express will remain the issuer and network for all products involved in the transaction. InComm will also acquire the Serve technology platform and other assets related to the American Express prepaid reloadable and gift card products business.

"After considerable deliberation, we have decided to partner with InComm as we start a new chapter for our prepaid business," said Stefan Happ, Executive Vice President & General Manager, Global Prepaid & Alternative Payments. "InComm's expertise and deep knowledge of the industry will be a great asset as we look to bring our best-in-class prepaid and gift card products to even more customers."

The American Express prepaid products included in the transaction include U.S. gift cards, B2B rewards and incentives, tax disbursements and general purpose reloadable cards. These products will further expand the already wide selection of physical and digital products InComm offers its distribution partners. The acquisition of the Serve technology platform will also expand InComm's processing capabilities.

"This is a very exciting deal for us, our retail partners and the new distribution partners this transaction will bring us," said Brooks Smith, InComm CEO. "We are always striving to add new and exciting products to our portfolio so our partners can better meet the needs of their customers. With American Express's suite of prepaid products, we are adding yet another popular and highly reputable brand to our ever-growing portfolio. Through our 15-year relationship with American Express, which includes being the first to distribute and activate their gift card in retail, we have gained a deep expertise that will allow us to be great stewards for their brand."

The deal is expected to close the first quarter of 2018, subject to completion of documentation and customary closing conditions.