Fiserv-First Data deal set to close
Fiserv expects its $22 billion purchase of First Data Corp. to close on Monday after clearing regulatory requirements.
“We’ve received all required regulatory approvals and plan to close the transaction on July 29,” Jeffery Yabuki, Fiserv's president and CEO, told analysts in an earnings conference call this week.
Fiserv plans to immediately move from the planning stage to actual integration with First Data’s merchant base and other technologies on “day one,” he added.
Fiserv will control the company from its Brookfield, Wis., headquarters, with Yabuki continuing to lead the company as CEO and chairman of the board and Frank Bisignano, the president and CEO of the New York-based First Data, serving as the combined entity’s president and chief operating officer.
An immediate goal will be leveraging First Data’s connection to roughly 40% of U.S. merchants and Fiserv’s 100 million transaction accounts, Yabuki told analysts.
“We’re very excited about the opportunity to use the transactional account as a way for consumers to interact with any of their providers in a more frictionless way,” Yabuki said during the conference call.
Fiserv plans to stick to its plan to increase its investment in additional payment solutions by $500 million over the next five years, Yabuki told analysts.
Fiserv’s revenue for the second quarter was $1.45 billion, up 7% year over year. Revenue for the year to date was $2.8 billion, up 6%.