Fiserv to buy First Data Corporation in $22 billion stock dealStaff Writer | January 16, 2019
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.
Acquisition First Data shareholders will receive a fixed exchange ratio of 0.303
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. ■