Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Financial services technology Fiserv, Inc. (NASDAQ:FISV) reached an agreement to acquire First Data Corp (NYSE:FDC), a leader in commerce-enabling technology, for $22 billion.
What Happened
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Fiserv's all-stock acquisition will see First Data shareholders receiving 0.303 shares of Fiserv for each First Data share held. The fixed exchange ratio implies an equity value of $22 billion and represents a 29 percent premium to the five-day volume weight average price. The transaction will see Fiserv shareholders controlling 57.5 percent of the combined entity.
Why It's Important
The combination of Fiserv and First Data will create one of the largest payments and financial technology providers in the world, the companies said in the press release. The highly complementary combination will offer clients a range of services, including card issuer processing and network services and a cloud-based point of sale solution.
"We expect to redefine the manner in which people and institutions move money and information," said Jeffery Yabuki, President and CEO of Fiserv.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
What's Next
The merger is expected to be accretive to Fiserv's earnings by more than 20 percent in the first full year fafter closing. Over a five-year period, the merger is expected to generate at least $500 million of revenue synergies and generate around $900 million of run-rate cost synergy savings over the same time period.
The transaction is expected to close during the bottom half of 2019 and remains subject to customary closing conditions and regulatory approvals.
First Data shares traded higher by nearly 20 percent, while Fiserv shares fell about 5.3 percent.
Related Links:
A Look Inside Payments Giant Fiserv: 'People Value Real-Time Speed'
What's Next For The Payment Space?
Photo courtesy of First Data.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.