The acquisition will lead to a differentiated financial services platform with enhanced payments capabilities
Fiserv and First Data Corporation announced that their boards of directors have unanimously approved a definitive merger agreement under which Fiserv will acquire First Data in $22 billion all-stock transactions. The deal unites two premier companies to create one of the world’s leading payments and financial technology providers, and an enhanced value proposition for its clients.
Together the organizations promise to offer leading technology capabilities that enable a range of payments and financial services, including account processing and digital banking solutions; card issuer processing and network services; e-commerce; integrated payments; and the Clover™ cloud-based point-of-sale solution. Moreover, the combined company will also offer comprehensive distribution channels and have deep expertise in partnering with financial institutions, merchants, and billers of all sizes, as well as software developers.
Jeffery Yabuki, President and Chief Executive Officer, Fiserv, said that through this transformative combination, they expect to redefine the manner in which people and institutions move money and information. Further, he quoted, “We admire First Data for its excellence in merchant acquiring and global issuing services, and the tremendous progress they have made under Frank’s leadership. We expect this combination to catalyze and support an enhanced value proposition for our collective clients and their customers.”
The Chairman and CEO of First Data, Frank Bisignano, said, “I have long admired what Fiserv has achieved over the years, and I look forward to working with the talented associates of both companies as we set a higher standard of innovation and service in the industry.”
The management. Reportedly, the combined company will be led by an experienced board and leadership team that leverages the strengths and capabilities of both companies. Upon closing, Jeffery Yabuki, current Fiserv President and Chief Executive Officer, will serve as Chief Executive Officer and Chairman of the board of directors of the combined company. Frank Bisignano, current Chairman and Chief Executive Officer of First Data, will assume the role of President and Chief Operating Officer and will serve as director of the board of the combined company. The combined entity will be known as Fiserv.
The Transaction. The deal, which is expected to close during the second half of 2019, is subject to customary closing conditions and regulatory approvals, including the approval of shareholders of both companies. The transaction is not subject to any financing conditions.
Advisors. J.P. Morgan Securities LLC is acting as financial advisor to Fiserv while Sullivan & Cromwell LLP is serving as legal advisor to it. BofA Merrill Lynch is playing the role of financial advisor to First Data and Simpson Thacher & Bartlett LLP is a legal advisor for First Data.