Higher One has announced an agreement to sell all assets and certain liabilities of its Disbursements business -- including the OneAccount -- to one of its bank partners, Customers Bank and parent company, Customers Bancorp, Inc.

The gross purchase price is a reported $37 million cash to be paid in three installments beginning with an initial $17 million paid at closing followed by two $10 million installments in 2017 and 2018. Also beginning in 2017, and continuing for a period of three years if fiscal revenues for the Disbursements business under Customers Bank exceed $75 million, Higher One will receive 35% of the excess revenue, payable in the subsequent year. The transaction is subject to creditor and shareholder approval and is expected to close in the second quarter of 2016.

Higher One’s Disbursements business includes the company's Refund Management Disbursement Service and the OneAccount. Refund Management is being used for disbursement processes at some 800 college and university campuses nationwide, while the OneAccount is an FDIC-insured checking account offered through Higher One’s bank partners to an estimated two million college students across the U.S.

Customers Bank is a bank partner of Higher One and has been a provider of the OneAccount checking account since 2013.

“This agreement with our bank partner Customers Bank will enable continuity in a new regulatory environment for campuses and students who use our proven and valued services,” says Marc Sheinbaum, president and CEO of Higher One Holdings. “Customers Bank and its BankMobile division are well positioned to continue innovating the Refund Management Disbursements Service and OneAccount models, as they have the product portfolio, assets and strategic vision to serve colleges and universities and their students well.”

Higher One Holdings, Inc. will continue to provide its Payments solutions to colleges and universities, including CASHNet Payment Solutions and Campus Solutions.

“Our Payments business has experienced strong revenue growth over the last few years and, at this time, Higher One has retained the services of Raymond James to assist in the evaluation of all strategic options for that business," adds Sheinbaum. "The CASHNet suite of payments services has helped higher education institutions offer payments solutions while improving the payer experience, and we’ve helped campuses navigate through the complexity of online and card-present transactions for students.”

Additional information regarding the sale of the Higher One Disbursements business can be found at the company's Investor Relations page.