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1/16/2019, 1:17 PM (Source: TeleTrader)
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Fiserv-1.41%

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Fiserv, First Data reach $22B acquisition deal

United States financial services company Fiserv Inc. and First Data Corporation announced on Wednesday that their $22 billion merger agreement was unanimously approved by their boards of directors. Under the terms of the agreement, Fiserv will buy First Data in an all-stock transaction. First Data shareholders will get a fixed exchange ratio of 0.303 Fiserv shares for every First Data share and after the transaction is closed, Fiserv shareholders will own 57.5% of the combined company.

"Through this transformative combination, we expect to redefine the manner in which people and institutions move money and information," Fiserv Chief Executive Officer Jeffery Yabuki stated. "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," he added.

Following the merger announcement, Fiserv shares fell 3.18%, while First Data stock surged 24.0% during premarket trading.

Breaking the News / SS