Jan. 16, 2019
Firserv is acquring First Data Corp. in an all-stock deal valued at $22 billion, according to a press release.
Fiserv will integrate its digital banking business into First Data’s digital merchant account business, which includes the Clover POS terminals.
Fiserv will pay $22.74 a share, which represents a premium of 29 percent based on the closing share price from Monday. Under the new structure, Fiserv shareholders will own 57.5 percent of the combined firm, while First Data shareholders will own the remaining 42.5 percent.
"Through this transformative combination, we expect to redefine the manner in which people and institutions move money and information," Jefferey Yabuki, president and CEO of Fiserv, said in the release.
Yabuki will serve as chairman and CEO of the combined company, which will operate under the Fiserv brand. Frank Bisignano, current CEO of First Data, will serve as president and COO of the merged firm.
The firm expects to invest about $500 million in technologies, including next generation merchant solutions, digital enablement, risk management and other services, according to the release.
The companies said the combination will boost earnings per share by about 20 percent in the first year and generate about $900 million in run-rate cost synergies over five years.
The deal is expected to close during the first half of 2019.
Topics: Financial News, Mobile Payments, POS, Retail, Technology Providers
Companies: First Data, Fiserv
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