Fiserv buying First Data in $22B all-stock deal
Financial services firm Fiserv said Wednesday it is buying First Data in a $22 billion all-stock deal.
The boards of both U.S. companies have approved the deal, which will result in Fiserv shareholders owning 57.5 percent of the combined entity.
The deal is expected to generate at least $500 million of revenue synergies over a five-year period and boost adjusted earnings per share by more than 20 percent in the first full year after closing, which is expected in the second half of this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FISV | NO DATA AVAILABLE | - | - | - |
| fdc | NO DATA AVAILABLE | - | - | - |
“Incremental revenue growth is expected to come from a focus on delivering additional client value in areas such as bank merchant services and Clover, credit processing, additional biller services and network innovation,” Fiserv said in a statement.
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The new board will have six directors from Fiserv and four from First Data.
“Fiserv intends to refinance the approximately $17 billion of debt that First Data is expected to have at the time of closing, and has entered into a committed bridge financing arrangement in connection with the transaction,” Fiserv said.