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Fiserv to buy First Data Corporation in $22 billion stock deal POST Online Media

Fiserv to buy First Data Corporation in $22 billion stock deal

Staff Writer | Wednesday January 16, 2019 8:31AM ET
First Data Corporation
Acquisition   First Data shareholders will receive a fixed exchange ratio of 0.303

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 an all-stock transaction.


The transaction 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.

Under the terms of the agreement, First Data shareholders will receive a fixed exchange ratio of 0.303 Fiserv shares for each share of First Data common stock they own, for an equity value of $22 billion.

This represents $22.74 based on closing prices as of January 15, and a premium of 29% to the five-day volume weighted average price as of that date.

Following the close of the transaction, Fiserv shareholders will own 57.5% of the combined company, and First Data shareholders will own 42.5%, on a fully diluted basis.

The all-stock transaction is intended to be tax-free to First Data shareholders.

 

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