Fiserv (NASDAQ:FISV) has reached an agreement to acquire First Data in an all-stock deal valued at approximately $22 billion. The agreement Author: Matthew Cochrane. First Data Corp (FDC) For the selected Options Expiration date, the information listed at the top of the page includes: Options Expiration: The last day on which an option may be exercised, or the date when an option contract ends. Also includes the number of days till options expiration (this number includes weekends and holidays). Are you trading options on First Data (NYSE:FDC)? View FDC's options chain, put prices and call prices at MarketBeat. Get instant access to exclusive investing ideas, stock lists and powerful research tools with 30 days of MarketBeat All Access for just $ Sign Up Now. Market Data and Calendars.
The agreement combines two companies in the financial services industry that surprisingly overlap very little in their core capabilities. Fiserv provides financial institutions and banks with services such as electronic bill pay, digital and mobile banking solutions, and financial planning tools, First data stock options. First Data is a payment processing company that provides merchants with point-of-sale hardware, such as its popular Clover offeringFirst data stock options, that enables them to accept electronic and digital payments.
Under the terms of the deal, First Data shareholders will receive 0. At the agreement's closing, Fiserv shareholders will own Let's take a closer look at what Fiserv will look like once the two companies are integrated and what the move says about the current state of the payments and fintech industries.
Image source: Getty Images. Let's tackle these issues in order:. Cost savings. In the conference call with analysts following the deal's announcement, Yabuki said, "We spent significant time and diligence validating these assumptions and expect the savings to come from a number of areas, including the elimination of duplicative overhead, streamlined and enhanced technology infrastructure, increased operational efficiencies, process improvements, and global footprint optimization.
While that First data stock options still a lot of debt, the combined entity will be able to swallow that bitter pill a bit more easily than First Data alone. For the first two years after the acquisition, First data stock options, Fiserv First data stock options suspend its share buyback program to prioritize paying down that mountain of debt.
Revenue synergies. In the conference call, Yabuki said, "Our revenue synergies will be driven by a focus on additional client value in areas such as bank Merchant Services and Clover, credit processing, expanded biller and payment services, along with many additional opportunities to innovate across our network.
While there is not a direct overlap between much of the two companies' services, that doesn't mean they don't exist. Take Clover, First Data's cloud-based, mobile point-of-sale solution. Banks that subscribe to Fiserv's platforms can now offer Clover as a default point-of-sale option to their business accounts.
As Bisignano put it, the deal "massively changes the distribution First data stock options of Clover. While all of the synergies listed above seem plausible, this move was all about Fiserv and First Data playing First data stock options, not offense. It wasn't too long ago that the payment processing industry offered a largely commoditized service to merchants with established storefronts.
Square first offered mobile point-of-sale solutions, then moved to other innovative solutions, including giving merchants immediate access to their money for a feepayment processing solutions tailored to specific industriesand a business micro-loan platform.
With Clover becoming a part of Fiserv, banks will have the same access to sales data that Square has and be able to offer loans to merchants in much the same way Square does now, First data stock options. For financial institutions losing market share to First data stock options, that is a compelling proposition. Fiserv is also facing renewed competition from upstarts such as Q2 Holdings NYSE:QTWOwhich is growing revenue much faster by offering digital expertise and cloud-based platforms to small banks and local credit unions.
While this deal does not solve all of these problems, it increases both companies' reach into sectors where they previously had no presence. The interesting combinations and larger distribution channels might be enough to recharge growth and stave off disruptive upstarts a bit longer.
While I'm not rushing to buy shares of either company just yet, once the acquisition is complete, the more-robust Fiserv will bear close watching by investors. Updated: Apr 21, at PM. Published: Jan 22, at AM. Author Bio As an economic crimes detective, Matthew focuses on helping others avoid becoming victims of fraud and scams. He is most familiar with the fintech and payments industry and devotes much of his writing to covering these two sectors. Follow FoolMCochrane. Stock Advisor launched in February of Join Stock Advisor.
ENTER AN EXECUTIVE OR COMPANY NAME. FIRST DATA CORP income statements for executive base pay and bonus are filed yearly with the SEC in the edgar filing system. FIRST DATA CORP annual reports of executive compensation and pay are most commonly found in the Def 14a documents. Total Equity aggregates grant date fair value of stock and option awards. First Data Corp (FDC) For the selected Options Expiration date, the information listed at the top of the page includes: Options Expiration: The last day on which an option may be exercised, or the date when an option contract ends. Also includes the number of days till options expiration (this number includes weekends and holidays). First Data go beyond with a total rewards package that provides competitive cash compensation with benefit programs that promote good health, saving for retirement, and work/life balance, as well as encouraging community responsibility.