First Data to buy CardConnect for $750 million
First Data hopes to enhance its ability to integrate payments with other merchant services by acquiring the processor and technology company CardConnect, which is already one of First Data's largest distribution partners.
After the acquisition, First Data would receive all outstanding CardConnect common stock for $15 a share, or about $750 million. The deal is expected to close in the third quarter.
The deal would add CardConnect's partner management tools, accelerate First Data's ISV initiative, and bring First Data technology to payment systems that are integrated with enterprise resource planning programs. CardConnect processes about $26 billion annually from 67,000 merchant customers.
“This transaction is consistent with our strategy of integrating and scaling innovative technologies across our distribution footprint to better serve our partners and customers,” First Data Chairman and CEO Frank Bisignano said in a press release. “CardConnect is a long-standing First Data distribution partner and we are excited to incorporate their state-of-the-art solutions across some of our most important strategic initiatives such as partner-centric distribution, integrated payments, and enterprise payments solutions.”
The CardConnect acquisition would add scale to First Data's long-standing strategy to become a more tech-savvy and diversified merchant acquirer. In keeping with that strategy it bought the e-commerce technology specialist Acculynk earlier this year.